You can't sue the US government for this without its permission.
Correct! Sovereign immunity.
Which is circular logic. To sue an entity which you fund is to indrectly sue yourself.
What? No. You can sue your employee after all.
When suing in a case like this, punitive damages would be paid out of the governments budget, rather than the personal assets of those personally responsible, correct?
Yes Alan Watts, everything is connected, but organizations and people can still remain distinct and have different motivations. :)