Hello Brad,
USB0_ISTAT register should be read correctly only if USB clock gate was enabled before.
Remember that USB can be fed from USB_CLKIN or MCGFLLCLK/MCGPLLCLK/IRC48M (selected in SIM_SOPT2) but you need to enable clock gate control in SIM_SCGC4 register:
SIM_SCGC4 |= SIM_SCGC4_USBOTG_MASK;
Hope this helps!
Regards,
Isaac