Agree with your assessment 100%. US Mil contractors testing technology on US Citizens.
Gov't will always deny it because most aspects of this have, and continue to, violate fundamental rights. If it was acknowledged it would be sued into oblivion under 42 US 1983 and other acts.
Granted, it isn't chemical or biological this time, but there's troubling precedence decades ago. Even more recently, federal gov intercepting US Citizen information and passing it along to local law enforcement so they can initiate frivolous traffic stops for "benign" reasons to "discover" the federal tip comes to mind.
In any event, the constitution doesn't protect our rights very much; it just placates people into a belief that it does. Don't worry ya'll though, eventually these will be "for the children".