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He's sadly got a bit of truth there.
I've heard it called the homeless industrial complex, groups get public sector funding to purchase necessities and camping equipment for distribution. Occasionally drop shipping it and paying themselves or some other double Irish maneuver.
Then the encampment gets bulldozed/ razed/ robbed/ flooded and its all destroyed along with any progress the unhoused have managed and all their belongings and reserves.
And they get handed new tents and socks and instant ramen etc.
Meanwhile the persons medical care from sleeping outside skyrockets occupying a large chunk of their discretionary time. As a huge obstacle to getting back on their feet.
So the government is paying someone to help them sleep outside, and paying for the consequences of them sleeping outside, and collecting no tax revenue.
Might as well just give them an apartment, if the cruelty wasn't the point that is.