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 Last year, the court by a 5-4 vote ruled that parents who send their children to a church school were entitled to a state tuition subsidy on the same basis as those in public schools (in Espinoza vs. Montana). Los Angeles Times, 17 June 2021 The city of Baltimore granted the developer a $107 million subsidy to get the Harbor Point project moving in what had been an old brownfields. Jacques Kelly,, 12 June 2021 Stadium Point project: Peoria offered up a steep subsidy to move forward with a $510 million project to further develop its P83 entertainment district with apartments or condominiums, a full-service hotel and office space., 4 June 2021 But such a subsidy could add up to $8.4 billion to $12 billion a year or more for 14 million households. New York Times, 1 June 2021 Exelon wants a 10-year package with a larger ratepayer subsidy amid threats of shutting down the nuclear generators. Bill Ruthhart,, 31 May 2021 The foundation began this year by awarding a $1,000 cash subsidy to support a graduating North Olmsted High School senior. John Benson, cleveland, 27 May 2021 The conversion of public subsidy into private profit feels like a rupture in the system—one that would be fixed, perhaps, if states controlled the fruits of their funding more. Samanth Subramanian, Quartz, 12 May 2021 And the level of subsidy for Highland has shrunk each year since 2018. Robert Higgs, cleveland, 20 Apr. 2021

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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Time Traveler for subsidy

Time Traveler

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

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Statistics for subsidy

Last Updated

23 Jun 2021

Cite this Entry

“Subsidy.” Dictionary, Merriam-Webster, Accessed 23 Jun. 2021.

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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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