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

But almost no existing electric car models are eligible for subsidies under the scheme. Kuwar Singh, Quartz India, "Incentives announced in India’s union budget may not do much for electric vehicles," 5 July 2019 Older, bigger farm subsidy programs also contain $125,000 caps -- with similar ways to get around them. CBS News, "Trump farm subsidies: Farmers find ways to boost their payments," 3 July 2019 Those qualifying for greater subsidies pay even less. Dennis Normile, Science | AAAS, "Australia continues to see steady drop in new HIV infections," 2 July 2019 The United States had previously identified European imports worth $21 billion a year for potential tariffs in retaliation for Europe’s subsidies for Airbus. Amie Tsang,, "US proposes new tariffs on $4 billion of EU goods as trade dispute grows," 2 July 2019 In Japan, whaling isn’t a particularly lucrative business, and it has in fact relied on government subsidies for years. Jason Daley, Smithsonian, "Japan Resumes Commercial Whaling in Its Home Waters," 1 July 2019 TIFs have become the preferred method for city development subsidies and involve selling low-interest municipal bonds to pay for building infrastructure. Meredith Cohn,, "University of Maryland BioPark plans 10-story gateway tower on MLK Blvd.," 27 June 2019 More: Nuclear power companies have spent millions lobbying for subsidies. Jessie Balmert,, "Ohio's nuclear 'bailout' bill changed again. Here's what you need to know.," 26 June 2019 Customers who make too much money to qualify for subsidies have sometimes found the plans are unaffordable, while others have complained that deductibles, while capped under the law, are still too high. NBC News, "What is 'Medicare for All' and how would it work?," 20 June 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

11 Jul 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

What made you want to look up subsidy? Please tell us where you read or heard it (including the quote, if possible).


appealing forcibly to the mind or reason

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