PhD advisor lost funding, need advice
If your advisor can't support you and your research, find another advisor as soon as possible. Your department/grad program should be able to help with this and talking to them should be your next step - it's also possible they can do something to get you funded in the immediate term. In fact, this should have been the advice your advisor gave you instead of suggesting you try to float around for a semester.

You might be able to keep your current advisor as a co-advisor or something, but frankly the way they handled this situation (waiting to tell you until now) is absolutely horrible and unprofessional (and selfish): they would have known long ago that funding was expiring and if they were waiting on some pending grant applications they needed to inform you then so you could line up other support.

I wouldn't be able to trust that person again.