> I was under the impression that the US Gov't can decide whether or not it can be sued by a plaintiff. If that is the case I have a sneaking suspicion that the Government would decline to continue with any case against itself regarding this issue.

Yes, the US government has inherited the concept of sovereign immunity from UK common law. That means the US can only be sued with its consent. However, Congress (which represents the people) has waived its own sovereign immunity in most cases.

Thus, the people of the United States can sue the United States since they have (via Congress) given their own consent to sue themselves.

“The government” is just people and in the US there are many people who don’t believe the government should have unlimited power, including many who work in the government as judges.