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 incentive would stack on top of state tax credits, combining to create the world’s most generous subsidies for film and TV. — Gene Maddaus, Variety, 24 Sep. 2026

The administration charged that some recipients were not real people and others had received subsidies without being qualified for them. — Christopher Keating, Hartford Courant, 24 Sep. 2026

Housing advocates have said this could limit the number of people who can access federal aid programs, including rental subsidies. — Marissa J. Lang, NPR, 23 Sep. 2026

Public finances worldwide were already in a relatively parlous state, but there is little appetite for the political consequences of withdrawing fuel subsidies to restore fiscal rectitude. — Prashant Rao, semafor.com, 23 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