sub·​si·​dy | \ ˈsəb-sə-dē How to pronounce subsidy (audio) , -zə-\
plural subsidies

Definition of subsidy

: 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

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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

Most people covered on the state health insurance marketplace receive subsidies to offset those increases., "Health insurance premiums for hundreds of thousands of residents buying coverage through the Massachusetts Health Connector will rise 4 percent on average next year, officials said Thursday.," 13 Sep. 2019 Unlike other Israelis, many ultra-Orthodox receive state subsidies to study the Torah and raise large families. New York Times, "How Jewish Should the Jewish State Be? The Question Shadows an Israeli Vote," 12 Sep. 2019 Residents often don’t understand the need for change and, because the poorest receive heating subsidies, many have little direct incentive to do so. The Economist, "In the Baltic states, many people are stuck in Khrushchev-era flats," 15 Aug. 2019 The Senior Assisted Living Group Home Subsidy Program provides subsidies to low-income older adults to assist with the cost of services provided in assisted living facilities. Mary Grace Keller,, "Carroll County officials say state-provided assisted living subsidy fails to cover cost for senior citizens," 19 July 2019 Replacing mixed-status households with eligible residents would also cost the agency at least $193 million annually, since HUD would be forced to provide full subsidies to each member of the household, the report found. Dominic Fracassa,, "SF slams ‘heartless’ plan to block public housing for undocumented immigrants," 16 July 2019 Since 1965, the federal government had provided subsidies to banks such as Sallie Mae to lend money to students. Adam Harris, The Atlantic, "The Decade That Changed the Student-Debt Debate," 5 June 2019 The proposal also requires the state to develop a plan to provide subsidies that would help low-income people afford premiums. Joseph O’sullivan, The Seattle Times, "Should the Legislature bring universal health care to Washington?," 19 Feb. 2019 Yang has plenty of ideas endorsed by climate experts, such as ending fossil fuel subsidies, a carbon tax and dividend to fund new technologies, stopping fossil fuel development on all public lands, and net-zero car emissions by 2030. Caitlin Conant, CBS News, "2020 Daily Trail Markers: Another Kennedy?," 26 Aug. 2019

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'subsidy.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of subsidy

14th century, in the meaning defined above

History and Etymology for subsidy

Middle English subsidie, from Anglo-French, from Latin subsidium reserve troops, support, assistance, from sub- near + sedēre to sit — more at sub-, sit

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Statistics for subsidy

Last Updated

19 Sep 2019

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Time Traveler for subsidy

The first known use of subsidy was in the 14th century

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More Definitions for subsidy



English Language Learners Definition of subsidy

: money that is paid usually by a government to keep the price of a product or service low or to help a business or organization to continue to function

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Comments on subsidy

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miscellaneous remnants or debris

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