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

So far, anti-AI legislation has taken the form of blocking subsidies for AI data centers. — Jim Edwards, Fortune, 16 Oct. 2026

With a swing to far-right populism, local production is being put through a political grinder, first in Javier Milei’s Argentina who decimated public-sector subsidies. — Leo Barraclough, Variety, 15 Oct. 2026

New changes to Medicare coming in 2027 include higher Part D out-of-pocket caps, the end of temporary federal Part D premium subsidies, and new drug price negotiations. — ABC News, 15 Oct. 2026

Researchers who study stadium financing have said that Kansas’ arrangement with the Chiefs represents one of the most generous public subsidies of a professional sports team in American history. — Chris Higgins, Kansas City Star, 15 Oct. 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