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

• 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

For decades, subsidies on fuel, electricity, and water encouraged massive waste and drained Saudi Arabia’s budget. —Ali Shihabi, Time, 8 Sep. 2025

Adding to this pressure is the expiration of key healthcare subsidies at the end of the year. —Nick Lichtenberg, Fortune, 8 Sep. 2025

With health insurance premiums projected to skyrocket at the end of the year thanks to the expiration of tax credits Democrats enacted during the pandemic, Republicans are likely to focus on paring back those federal subsidies. —Burgess Everett, semafor.com, 8 Sep. 2025

New Democracy has seen a slide in popularity caused by high food, housing and energy prices and investigations into corruption allegations over recycling and EU subsidy fraud. —Angeliki Koutantou, Reuters, 7 Sep. 2025

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