Yes, the $2600 gets you services, meals, sanitation and staffing. But in reality, you can get a decent 1BR apartment for $1500 that is waaay bigger than a tent, sanitation for free since it is an apartment, and have almost $1000 for groceries left over. And, you can fit more people in the apartment than a 12x12 tent. I know that this calculation is an over simplification of costs, but it still gives you a decent perspective on what can be done with that kind of money.
And I disagree this will save money long term or elsewhere. When you don't address the root cause and spend money wisely, you only leave room for more spending in the future.