According to this article that claim is true.
"In 1926, the federal government, in an effort to enforce the so-called 'Noble Experiment,' mandated adding poisons (including methanol) to industrial alcohol so as to discourage people from drinking it."
They chose methanol as it was cheaper and easier to come by than ethanol. This article claims bootleggers were also partly to blame as they knowingly smuggled in alcohol with methanol already mixed in. Unfortunately, this did not help decrease consumption but instead resulted in death and suffering.
On Dec. 28, 1926, Charles Norris, Chief Medical Examiner of NYC, stated " ' the government knows it is not stopping drinking by putting poison in alcohol. It knows what the bootleggers are doing with is and yet it continues its poisoning process, heedless of the fact that people determined to drink are daily absorbing that poison. Knowing this to be true, the United States Government must be charged with the moral responsibility for the deaths that poisoned liquor causes.' "
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2972336/#:~:text=In%201926%2C%20the%20federal%20government,discourage%20people%20from%20drinking%20it.