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

The European Commission is aware of this challenge and opened a foreign subsidies investigation into Goldwind’s activities in the EU wind sector in February. — Sam Birchall, Fortune, 2 Oct. 2026

Yet, many leadership teams are still budgeting as if the old flat-rate subsidies remain in place. — Aruna Veerappan, Forbes.com, 1 Oct. 2026

Hundreds of thousands more may lose their Affordable Care Act plan subsidies and Medicare coverage in January. — STAT, 1 Oct. 2026

That shift could require price subsidies for consumers and slow the country’s data-center boom. — Dan Restrepo, Foreign Affairs, 30 Sep. 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