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

Republicans last year cut about $1 trillion over a decade from Medicaid and declined to extend covid-19-era subsidies that had lowered the cost of health plans under the Affordable Care Act. —Ali Swenson, Arkansas Online, 9 Feb. 2026

At the same time, a large share of the affordable housing that does exist is tied to federal subsidies that weren't designed to be indefinite. —CBS News, 8 Feb. 2026

Attendees at the baby fair in Seoul nodded to the government’s many initiatives, including subsidies and support programs for young parents. —Jessie Yeung, CNN Money, 7 Feb. 2026

Advocates warn that cutting off the child care subsidies could have deep impacts. —Geoff Mulvihill, Chicago Tribune, 7 Feb. 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