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

• 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

Senate Republicans have failed to pass a clean short-term measure as Democrats dig in on health care priorities, specifically extending subsidies under the Affordable Care Act. —David Brennan, ABC News, 27 Oct. 2025

That tension has come into sharp focus during the government shutdown as Democrats seize on rising premiums to pressure Republicans into extending expiring subsidies for the law, often referred to as Obamacare. —Nick Lichtenberg, Fortune, 27 Oct. 2025

See video … Tune in to the FOX NEWS RUNDOWN PODCAST for a breakdown of the political standoff over the government shutdown and the future of Obamacare subsidies. —FOXNews.com, 27 Oct. 2025

Democrats and Republicans are in a standoff over extending these subsidies as part of a government funding bill. —Molly Beck, jsonline.com, 27 Oct. 2025

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