NASA recently picked three American companies to help develop commercial space stations.

Out of eleven proposals, NASA chose Jeff Bezos' Blue Origin, Nanoracks, and Northrop Grumman (NOC  ) to obtain more than $400 million worth of federal funds via Space Act Agreements.

NASA would ultimately like to keep a constant American presence within low-Earth orbit by going from the International Space Station to other space platforms. So it will be providing funds to restore the American private sector of more independent space stations that will be accessible to government as well as private sector consumers.

"Building on our successful initiatives to partner with private industry to deliver cargo, and now our NASA astronauts, to the International Space Station, NASA is once again leading the way to commercialize space activities," said NASA Administrator Bill Nelson in a press statement. "With commercial companies now providing transportation to low-Earth orbit in place, we are partnering with U.S. companies to develop the space destinations where people can visit, live, and work, enabling NASA to continue forging a path in space for the benefit of humanity while fostering commercial activity in space."

The government funding and awards serve as the initial part of a two-phase procedure in order to guarantee an easier move to commercial stations. Intended to begin throughout the year 2025, the first phase will permit the receivers of the funding to make plans and designs that are up to par with private sector and government necessities alike.

Throughout the second phase, the company would like to endorse the stations for the intention of ultimate astronaut usage.

With newfound government funding toward private space stations, NASA will surely be able to help the private space sector to commercialize space activity, which will ultimately simulant the budding space tourism industry, with includes companies such as SpaceX and Virgin Galactic (SPCE  ).