Now that would represent a major break-through in manned space operations!
They did keep funding the inflatable space hab after a manner. They handed it off to a private firm and loaned them use of NASA personnel and gave them use of all the patents. Two test articles are flying right now with the follow on habitable module going up possibly next year. Google up Bigelow Aerospace for more info.
Actually I'm glad that NASA isn't funding Transhab. Rather that Bigelow Aerospace is not only funding Transhab inflatable space stations, they have actually flown in space 2 prototypes that have been functioning flawlessly for a couple of years now.
They also are working on flying a manned inflatable "space hotel" soon. All on private funds.