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

As the Biden Administration introduced generous subsidies for investing in certain technologies, such as semiconductors and electric vehicles, construction spending in manufacturing more than tripled. —John Cassidy, New Yorker, 18 May 2026

The push accelerated in the 1990s with heavy subsidies. —Chris Lau, CNN Money, 18 May 2026

In a region where Malaysia’s fuel subsidies have exploded to $819 million a month, Japan’s game plan has become a burden—not an insurance policy or a strategic shield. —Ken Silverstein, Forbes.com, 17 May 2026

Farmers have struggled to cover production costs, and dwindling state subsidies haven’t been sufficient to keep many businesses afloat, according to officials. —Stephen Underwood, Hartford Courant, 16 May 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