At that point, the government may decide to simply set up a refund program to reimburse folks and try to save some money by not challenging every claim in court.

Doubtful. This administration has no problems spending lots and lots of money if it aligns with the Monarch’s decrees. And if there are two things Trump values, it’s tariffs, and blind loyalty. They will aggressively challenge everyone who is not letting Trump grab them by the pussy.