It's hoped funding for the inner city worth five million euro can be saved.
The area's tender for the SICAP grant was rejeceted on technical grounds. The Social Inclusion and Community Activation Programme helps tackle poverty, social exclusion and unemployment in different parts of Dublin.
Tenders for the grant have been issued for five regions in the capital - but the inner city has been left out for 'technical reasons'.
The money goes towards projects like breakfast clubs and community employment centres.
This funding is worth around €1 million annualy between 2018 and 2022 and provides services like training, youth education and community action programmes.
The area includes Dublin's north inner city, where a number of gangland shootings have been carried out as part of the deadly Hutch/Kinahan feud.
The council's Local Community Development Committee says it remains committed to providing funding for the area and it's understood that a three-month period will be given for the tender to be reviewed.