It’s not clear from the article, but I’m guessing that the government’s argument is that – while Cruz couldn’t repay himself the full $260,000 from post-election raised funds – he had sufficient funds raised before the election to cover the $10,000 difference. Essentially, that he’s choosing to “injure himself” by refusing to repay himself from those funds.
It’s a credible argument, but litigants contrive to “injure themselves” all the time for the purposes of challenging unconstitutional laws – e.g. Rosa Parks could have just moved to the back of the bus. The injury doesn’t have to be severe to create standing – any additional burden or hoops that Cruz had to jump through to repay the loan could qualify.
Yes, say what you will about the man’s motivations, Raphael “Ted” Cruz is not operating from stupidity. He went to Harvard Law. He knows his stuff.
The question is whether it’s possible to construct a case that does “injure” himself sufficiently to create standing. Presumably from the government’s point of view, the loan would have to be at least $1 more than all the money he raised before the election. OTOH, it’s not clear from this discussion whether that means “all money” or “money left over after other election expenses were paid”. Or did he definitely have $10,000 left over?
OTOH, 8 of those cases were as Solicitor General of Texas, where he was representing a fairly conservative state before a more moderate SC. He was 1-0 in front of the court as a private attorney in a non-ideological case.