They could probably build and launch a whole new Hubble for less than it costs to do a single shuttle mission.
(Assuming the Hubble could be easily refitted to go up on a one-shot booster.)
The expensive design and testing work is done. Dig out the blueprints and build another one.
So long as the James Webb telescope can keep its ridiculous budget overruns down for the remainder of the build time, that thing should put Hubble to shame, though it can only see infrared, not the visible spectrum. Oh well. Our eyes are incredibly limited anyway.
If that project was managed properly, they probably would have canceled and reworked that thing in the early stages. Apparently they were over budget very early on, but it wasn't properly reported. Project management fail. Still, it's a drop in the ocean compared to the government's yearly budget.
From what I understand, the big business bailout passed by Congress was more money than the entire 50 year+ budget for NASA to this date.
It's not a matter of not being able to pay for it, it's a matter of where our interests lie. In this case, Congress cares more about big business than they do the US advancing our knowledge of astronomy further. Which is really no surprise, given how hard the GOP pushed to get that tax cut for the top 1% while fighting tooth and nail against allowing the tax cut for the middle class.
Were the US to take our military budget and reduce it to 1/5th it's current size (which would still leave us at the top in the world in terms of military budget), we would easily have enough money to fund NASA, reinstate the space shuttle program, etc..
Basically it comes down to priorities - not for the US as a whole, but for Congress, who primarily focuses on keeping their rich buddies rich while continuing to dominate other countries so that the American empire continues it's dominance.