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

When those federal subsidies expired at the end of last year, millions saw their monthly premium bills double or even triple — forcing about 3 million people to walk away from their coverage altogether. — Berkeley Lovelace Jr, NBC news, 5 Nov. 2026

But the program has expanded far beyond its original scope — and become a subsidy for multibillion-dollar nonprofit hospital systems. — Ted Okon, The Orlando Sentinel, 5 Nov. 2026

Overall productivity must be calculated comprehensively, evaluating the net output gains against all the industrial subsidies, bad debts, foregone profits, and indirect support for investment that the government has provided. — Oliver Melton, Foreign Affairs, 5 Nov. 2026

Democratic leaders have said that reversing Republican cuts to premium subsidies for health insurance and work requirements for Medicaid will be at the top of their agenda. — Selena Simmons-Duffin, NPR, 4 Nov. 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