That's a good point, and you're right that NASA's budget will trickle down as support to privatized space companies.

As progress in the industry moves forward, though, I expect we may find other forms of government support, such as what we see in many countries' policies towards renewable energy.

"support" is not the same as a contract. ULA got a $1B a year just for "readiness", SpaceX gets contracts to do actually useful things, at a far lower cost than other contractors or NASA itself.