Do you even know the meaning of "public domain" or its relationship to works created by US federal employees or officers?
As to paying a fee to receive a copy of the work in the public domain. It is a regular practice to charge a nominal fee to make copies of public records. I don't think anyone would mind paying for high quality images or videos.
Personally I think the company should not both get paid to digitize and make the works available while charging for access to the works.
If this policy is for retired veterans then it is Bad. If the policy is for personnel on active duty then the policy is not unreasonable. (It's not right. Just legal.) Even the US military has a similar policy. The reason being that being critical of ones chain of command can have a detrimental effect.
So, there is a gag order and the company has issued a statement and ceased operations. Am I just paranoid or does this end with the government having the argument that the company violated the gag order? Granted, that would take a special level of cluelessness in regards to keeping a secret, but with the way they have been acting recently it might sound reasonable to them.
"Every day, about ten people die from unintentional drowning. Of these, two are children aged 14 or younger. Drowning ranks fifth among the leading causes of unintentional injury death in the United States."