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

That coordination is also being financed against a weaker fiscal backdrop than the subsidy numbers alone suggest. — Ashish Bhatia, Forbes.com, 4 Aug. 2026

On July 29, Medicare chief Mehmet Oz announced that the government is canceling a subsidy program that kept premiums for the Medicare prescription drug benefit — known as Part D — under control. — Business Columnist, Los Angeles Times, 4 Aug. 2026

The entire country is experiencing an economic crisis because of inflation caused by the recent removal of a fuel subsidy. — Alexis Okeowo, New Yorker, 3 Aug. 2026

The subsidy headlined a gaudy incentive package offering property and sales tax exemptions, discount electricity and payments for infrastructure in exchange for about 9,000 jobs. — Mark Dee august 2, Idaho Statesman, 2 Aug. 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