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

Tesla has its own stakes in Washington, where Congress and federal agencies can reshape electric-vehicle tax breaks, battery subsidies, autonomous-vehicle rules and trade policy affecting Chinese competitors. — Luke Fountain,lora Kolodny, CNBC, 22 Oct. 2026

However, the company’s lobbying skyrocketed 75 percent during the first nine months of 2025 over 2024 levels as Congress debated whether to extend enhanced Obamacare premium subsidies. — Megan R. Wilson, Washington Post, 22 Oct. 2026

As a Canadian company, Abrupt has a track record in international co-productions, production financing and tapping tax incentives and other soft money subsidies to get its documentaries made. — Etan Vlessing, HollywoodReporter, 22 Oct. 2026

Their expiration is not the same as eliminating the original ACA subsidies. — Sun Sentinel Editorial Board, Sun Sentinel, 22 Oct. 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