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

The administration's domestic policy plan this year targeted clean energy subsidies that have underpinned thousands of Kentucky jobs and billions of dollars in economic development projects. —Olivia Evans, Louisville Courier Journal, 16 Dec. 2025

The 111-page GOP blueprint, likely to get a House vote Wednesday, does not include an extension of the expiring health care premium subsidies. —David Lightman, Sacbee.com, 15 Dec. 2025

Economists, business leaders and politicians have debated the best solution to make America’s cost-of-living feel affordable again, including increasing health care and housing subsidies and reducing tariffs. —David Goldman, CNN Money, 15 Dec. 2025

The party has also been divided over how to handle government funding and the expiration of Affordable Care Act subsidies. —Oren Oppenheim, ABC News, 15 Dec. 2025

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