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I am caring for my elderly mom with dementia in her home. We find that, due to caregiver costs, we are no longer in a position to do so- any advice on how to broach the subject with him?

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First off, does mom have resources that are being tapped for her caregiving? VA, Medicaid should be accessed before your resources are used. Second, is it Mom or you who is providing support for brother? What are HIS options. I would, preferably in person, have a serious conversation with him about "the family's" financial situation.
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What else can you do except be forthright? In the process of telling him of your new situation, being unable to afford to help him financially, let him know that you will investigate what other help might be available to him. And then do your best to do just that.
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