It’s not supposed to be sustainable. They’re supposed to not do things that cause them to have to pay out millions of dollars in damages.
But ultimately, the money comes from taxpayers, via whatever government (city, county, state, whatever) is levying the taxes that pay for the agency’s operations. Ideally, there would be professional or political consequences for the management of an agency that repeatedly screwed people over badly enough that it cost taxpayers millions of dollars in liability. In practice, the kinds of wrongdoing that cost taxpayers millions in liability are often popular and widely supported.
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