Rather, they plan to allow the private sector to take over the LEO space station space.
The next phase of ceding LEO to the private sector is the International Space Station (ISS).
It’s an excellent interview I recommend listening to – the overall theme of the discussion is that NASA is pulling back from low Earth orbit (LEO) so that they can focus on deep space exploration, including cis-Lunar space and eventually Mars.
NASA is still likely to require LEO services, as the first leg of their deep space operations, if nothing else, and so they will remain an important customer as well.
In fact we may end up with an LEO infrastructure mostly by private companies providing services for the world’s space programs.