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

That development has been in the works since before Hogan took office and has moved ahead despite some vocal opponents, many of whom criticized a $23 million tax-increment-financing subsidy. Luke Broadwater,, "As governor, Larry Hogan's real estate business continues to thrive — prompting questions," 13 July 2018 Former President Barack Obama pushed philanthropists to tackle the problem late in his second term and proposed a broadband subsidy for poor households. Alex Shephard, The New Republic, "A Public Option for the Internet," 8 May 2018 That $11 million will flow to the district’s 83 smallest schools through a subsidy for schools with low enrollments, but all other schools still are likely lose about $90 per student in funding. Shelby Webb, Houston Chronicle, "Houston ISD shrinks projected budget deficit to $104M," 30 Apr. 2018 And child care services are funded just like at any other child care center — either from the parents themselves or, if the family qualifies, from a state subsidy since Penfield is one of the state's qualified child care providers. Amy Schwabe, Milwaukee Journal Sentinel, "Penfield Children's Center provides specialized child care for kids with medical needs," 17 Apr. 2018 The European Union is preparing tariffs on $12 billion of U.S. products over subsidies to Boeing Co., raising the stakes on the Trump administration’s plan for punishing the EU’s support to rival plane maker Airbus SE. Emre Peker, WSJ, "EU Prepares Tariffs Against U.S. Amid WTO Battle," 12 Apr. 2019 Removing state subsidies is something that el-Sissi’s predecessors could not do because of fears of unrest. Samy Magdy, The Seattle Times, "Egypt’s leader raises minimum wage by 67 percent," 30 Mar. 2019 In Europe, major renewable energy projects are already starting to take root without direct subsidies. Umair Irfan, Vox, "Climate and energy news in 2018 actually wasn’t all bad," 1 Jan. 2019 Under a Finance Ministry plan released this week, the maximum central-government subsidy for an electric car is being more than halved, cut to 27,500 yuan from 66,000 yuan (roughly $4,100 from $9,830) starting in June. Trefor Moss, WSJ, "China to Reduce the Juice for Electric-Car Sales," 27 Mar. 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

2 May 2019

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Time Traveler for subsidy

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

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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).


something valued as if it were money

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