The federal government of the United States is the central current reigning United States governmental body, established by the United States Constitution. The United States government's involvement with Umbrella stems from Umbrella's bio-weapons, which the US was interested in purchasing for use in warfare. It had soon became one of Umbrella's top customers. Umbrella used this to gain an edge by implanting agents in the US government itself, which allowed Umbrella's influence to spread into the Senate.
History
Raccoon City Incident
On the morning of September 25th 1998, the Army National Guard was deployed around Raccoon City following news of the T-virus outbreak in order to set up blockades around the several mountain roads leading into the city. By September 30th, the US military had established a significant presence on the outskirts of the city. During the night of September 29th, the US Army deployed a Special Forces unit into the city in order to retrieve the G-virus and gain custody of the researchers at the Underground Research Facility. However, due to some inner-meddling from Umbrella agents within the government, they took the wrong rail system and ended up in the P-12A Incinerator Facility. The unit was then confronted by five mass-produced T-103 Tyrant's which were deployed by Umbrella and a deadly battle ensued which left both sides completely decimated.
Umbrella's influence was used to particular extent during the Raccoon City Incident, when it used its influence in the Senate to pass the notion of eradicating Raccoon City. The decision was even stalled by Umbrella soon after. Eventually however, Operation |Baccillus Terminate (Mission Code: XX) was initiated atl dawn on October 1st 1998 when the decision was passed by a special committee, of which Senator Ron Davis was a member. An experimental nuclear weapon was then launched at Raccoon City in an effort to sterlize the outbreak and prevent it from spreading. This was merely the feigned motive for the launch however, with the true reason being to hide the involvement of both the government and Umbrella.
Following the incident, the government's agents outside the city managed to take several survivors into their custody, including Leon S. Kennedy, Sherry Birkin and the city's mayor, Michael Warren. Sherry was taken into the government's care due to her possession of the G-Antibody from the administration of the DEVIL vaccine. Leon on the other hand was forced to work for the government in exchange for their safety.
Political Fallout
Following the incident, the US government and Umbrella both suffered from the fallout. The government was heavily scrutinized, and the current president quickly announced his resignation following the incident. Umbrella's business decree in the United States was suspended indefinitely by the government, sending Umbrella USA into bankruptcy. Umbrella itself was bombarded with lawsuits, including a primary one initiated by the US government which was handled within the Supreme Court. Umbrella's deep pockets were able to buy the very best lawyers money could buy and hire many false witnesses however, and this prolonged the court case for another 5 years with part of the blame for the incident being placed on the government. The result was an on-going struggle between the US government and Umbrella which heavily skewered public opinion over the two parties.
New Administration
The new administration established the Anti-Umbrella Pursuit and Investigation Team within USSTRATCOM and tasked the unit with hunting down and eliminating rogue elements of Umbrella. One such task was the Spencer Rain incident in September 2002, which contributed heavily to Umbrella's downfall with the murder of top Umbrella employees and affiliates and the destruction of the Spencer Rain itself. Sometime after this, AUPIT was dissolved and 5 months later in February 2003, Umbrella lost the Supreme Court trial due to incriminating evidence provided by Albert Wesker following his raid of the Umbrella Caucasus Research Facility.
With Umbrella dissolved, the current administration continued to hide the government's involvement in the Raccoon City affair and the existence of the T-virus, leading to anger specifically from Curtis Miller, triggering the Harvardville outbreak on October 23rd 2005.