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

This means that the details of local subsidy design matter, including tax incentives, electricity tariff arrangements, grid and water upgrades, and whether any new resulting tax revenue will boost public services. — Daniel Yue, Fortune, 14 July 2026

Finally, Hochul said part of her plan will include a proposal to end tax subsidies for data centers. — Mason Leib, ABC News, 14 July 2026

Making matters more challenging, Congress didn’t renew covid pandemic-era subsidies that helped lower premiums for Affordable Care Act marketplace plans before this year. — Renuka Rayasam, The Orlando Sentinel, 13 July 2026

The state legislature partially replaced those subsidies, contributing $80 per month for people earning less than four times the poverty line, with an additional $29 for their dependents. — Meg Wingerter, Denver Post, 13 July 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