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

Eligible state workers using these transit options can receive the mass transit subsidy, which covers up to $340 a month in transit costs, according to CalHR. — Sacbee.com, 1 July 2026

More than 3 million people enrolled in an Affordable Care Act plan this year have dropped their coverage amid higher monthly premiums and the expiration of enhanced subsidies that made the health insurance plans more affordable. — Ken Alltucker, USA Today, 1 July 2026

Adding to the uncertainty, Congress allowed Affordable Care Act subsidies to expire last year, which caused insurance premiums to spike for millions more people. — Tamar Hallerman, AJC.com, 1 July 2026

In the past, many housing developers have shied away from building affordable housing because assembling the subsidies needed to make construction profitable is challenging. — Roger Vincent, Los Angeles Times, 30 June 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