subsidy

noun

sub·​si·​dy ˈsəb-sə-dē 

-zə-

plural subsidies

: a grant or gift of money: such as

a

: a sum of money formerly granted by the British Parliament to the crown and raised by special taxation

b

: money granted by one state to another

c

: a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public

Synonyms of subsidy

• grant
• allotment
• appropriation

Examples of subsidy in a Sentence

The city is increasing subsidies for public transit.

government subsidies for farmers in case of crop failure

Recent Examples on the Web

Quantifying the cost of disruptions — from fuel subsidies and emergency imports to lost output and idle workers — would make the case for resilience more tangible. — Nana Menya Ayensu, semafor.com, 7 Sep. 2026

Those companies currently operate the Ariane 6 and Vega-C rockets, which have proven reliable but are only marginally competitive, even with the assistance of government subsidies. — Stephen Clark, ArsTechnica, 6 Sep. 2026

State subsidies and mandates from Beijing have also encouraged excess production and cutthroat price wars, forcing them to turn to export markets and resulting in nearly a third of Chinese industrial firms operating at a loss. — Jason Ma, Fortune, 6 Sep. 2026

An efficient biomass stove that would normally retail for about $40 can cost customers as little as $5 after carbon subsidies. — ABC News, 6 Sep. 2026

Word History

Etymology

Middle English subsidie, from Anglo-French, from Latin subsidium reserve troops, support, assistance, from sub- near + sedēre to sit — more at sub-, sit

First Known Use

14th century, in the meaning defined above

Phrases Containing subsidy

• anti-subsidy

Kids Definition

subsidy

noun

sub·​si·​dy ˈsəb-səd-ē 

-zəd-

plural subsidies

: a grant or gift especially of money

especially : a grant by a government to a private person or company or to another government to assist an undertaking thought helpful to the public