halacha - Government subsidies or tzedoko

it is preferable not to take charity from non-Jews (maybe only if it is not in private)

Source Yore daiya 254

In a case of need (someone needs money for housing and/or food),
which is more preferable:
1. To take/collect tsedoko from Jews
or
2. To get subsidies from the non-Jewish government (e.g. Section 8 or food stamps) not a private non-Jew, but probably considered in public, maybe also Jewish since Jews pay taxes

Sources on subject would be greatly appreciated.

EDIT To fulfill the request of the Honorable @IsaacMoses bellow (sorry for being so slow)

254.1

אָסוּר לְיִשְׂרָאֵל לִטֹּל צְדָקָה מִן הָעוֹבְדֵי כּוֹכָבִים בְּפַרְהֶסְיָא. וְאִם אֵינוֹ יָכוֹל לִחְיוֹת בַּצְּדָקָה שֶׁל יִשְׂרָאֵל, וְאֵינוֹ יָכוֹל לִטְּלָהּ מֵהָעוֹבֵד כּוֹכָבִים בְּצִנְעָא, הֲרֵי זֶה מֻתָּר. It is forbidden to take tsedoko publicly from a non Jew, unless you can't other ways, from a Jew or privately.

So it would seem it is preferable to collect tzedoka from Jews (option one)
254.2

מֶלֶךְ אוֹ שַׂר עוֹבֵד כּוֹכָבִים שֶׁשָּׁלַח מָמוֹן לְיִשְׂרָאֵל לִצְדָקָה, אֵין מַחֲזִירִין אוֹתוֹ מִשּׁוּם שְׁלוֹם מַלְכוּת, אֶלָא נוֹטְלִין מִמֶּנּוּ וְיִנָּתֵן לַעֲנִיֵי נָכְרִים בַּסֶתֶר, כְּדֵי שֶׁלֹּא יִשְׁמַע הַמֶּלֶךְ. הַגָּה: וְיֵשׁ אוֹמְרִים דְּיַעֲשֶׂה בָּהֶן מַה שֶּׁצִּוָּה לוֹ הַמּוֹשֵׁל...
If the king sends money for Jews for tzedoko we should not return it for peace with the government but we should give is secretly to poor non-Jews, so that the kind will not hear about it haga there are those that say that you should do with them (the money) as the king says (give it to poor Jews)

It still seems to me that option one is preferred since the government is not sending the money but offering you to request it (by filling out a form)

But I am asking this question because I know of Orthodox Jews that do it and do not collect tzedoka from Jews at all, so maybe there is something I am not understanding correctly