Yeesh, that's rough. I would think they'd prefer to keep the people they know. You already know you're doing a good job, and you're known to them, so I think that would give you an edge.
Still, I see your point. Are 10 existing contractors just re-interviewing for their jobs and maybe a few new people will come in? Or are there 20 or 30 people competing to keep their old jobs, along with new applicants? Do you have any sense of what the number is, even though you can't get an answer from them?
And being an independent contractor, yeah, if you don't get rehired, you haven't paid anything into the unemployment system and you wouldn't therefore qualify for benefits.
On the other hand, if it comes to that, I advise you to at least apply. Sure, you'll probably be rejected, but it gets you counted as unemployed. You may be able to make a case for being counted as a displaced worker, and there are programs for displaced workers. So at least you might be able to get into a training program or maybe a preferred status for other jobs.
One good thing is that you have a cushion of time to plan. Are there other jobs you could apply for in the meantime? Or could you add other services to your contracting business?
One more thought: You may have grounds to sue for unemployment. When a contractor basically has one client (the courts, in your case) and must follow that client's rules, the client is in effect acting as employer. Even though the client didn't pay into unemployment insurance, you could sue to say it was a job and the employer may be required to pay the unemployment premiums so you'd get the benefits. If it comes to this, it would be worth talking to a workers' rights lawyer.
I know most of this isn't particularly encouraging, but once you're over the initial shock, you'll want to make the most of your possibilities.