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

Unlike countries like Morocco, Egypt and China, Kenya provides limited direct subsidies to cushion electricity prices. — ABC News, 19 Aug. 2026

The German subsidies helped to create a European market for solar modules and components, and Chinese firms built factories to meet that demand. — Stephanie Pappas, Scientific American, 18 Aug. 2026

The government plans rental subsidies, relief on utility bills and programs to build replacement housing. — Antonio María Delgado, Miami Herald, 18 Aug. 2026

Senegal raised fuel prices by 7% in order to contain the cost of subsidies, underscoring Africa’s vulnerability to foreign energy shocks like the one sparked by the Iran war. — Alexander Onukwue, semafor.com, 17 Aug. 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