Dublin City Council is seeking an urgent meeting with the Minister for the Environment over its budget for homeless accommodation.
At last night's meeting of the council, it emerged it is facing a deficit of €18.5 million.
Councillors sought €55 million from the Department of the Environment, but only €37 million was allocated, although negotiations are ongoing.
Councillors want the Minister to release funding they say was promised by the Government, and agree to cover the shortfall.
There are fears the shortfall will lead to cuts to some emergency accommodation for homeless people by the end of the year.
Fianna Fail's Group Leader on Dublin city council, Councillor Paul McAuliffe said the council is united in its determination to provide services for homeless people.
"We want to roll up our sleeves, share that work out across all the political parties," he said.
"All the parties agree that we need to meet the Minister and discuss what has gone wrong here. We need to outline clearly what this decision will mean for those in emergency accommodation."
He stressed all parties were willing to work together to ensure the services were retained, despite the funding shortfall.
Sinn Féin Councillor Daithí Doolan, meanwhile, said the situation was best described as a "state of emergency", as the council cannot even provide families who become homeless with accommodation.
The funds Dublin City Council say they need amount to the entire homeless services budget for the country.