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

This year, the enhanced subsidies that helped middle-income people afford Obamacare plans have been stuck in partisan congressional deadlock. —Peter Whoriskey The Washington Post, Arkansas Online, 22 Dec. 2025

See video … LISTEN Tune in for a look at how Congress is running out of time to extend Affordable Care Act tax subsidies, a lapse that could raise health insurance premiums for millions. —FOXNews.com, 22 Dec. 2025

As premiums and out-of-pocket costs have climbed for Californians earning working-class and middle-class pay, more residents face unstable coverage, rely on federal subsidies that are frequently subject to political battles in Washington or go uninsured altogether. —Cathie Anderson, Sacbee.com, 22 Dec. 2025

Top Republican and Democratic lawmakers in Topeka were expected to discuss the status of a possible massive subsidy deal to lure the Chiefs across the state line at the meeting of the Legislative Coordinating Council, or LCC. —Sam McDowell, Kansas City Star, 22 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