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

These government subsidies still exist today. —Idrees Kahloon, The Atlantic, 13 Apr. 2026

Money has been squeezed for federal Section 8 housing vouchers, which provide subsidies for low-income residents, causing agencies across the region to close the program to new applicants. —Michael Smolens, San Diego Union-Tribune, 12 Apr. 2026

The second is that households earning over four times the federal poverty level no longer qualify for ACA subsidies. —Julie Appleby, CNN Money, 12 Apr. 2026

The new nutrition restrictions come at a time when health coverage such as Medicaid and Affordable Care Act subsidies are also being stripped away from lawfully present immigrants. —Laura Turbay, Chicago Tribune, 11 Apr. 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