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 of subsidy

• 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

In the end, the Democrats mostly oriented their demands toward health care—above all, the renewal of expiring Obamacare subsidies—as opposed to, say, prioritizing more abstract ultimatums related to creeping authoritarianism. —Jon Allsop, New Yorker, 11 Nov. 2025

Advertisement Republican Senator Bill Cassidy of Louisiana has proposed redirecting some of the money for ACA subsidies directly to households rather than to insurers. —Nik Popli, Time, 11 Nov. 2025

Schumer, who voted against the package, had pressed for a guarantee on extending Affordable Care Act (ACA) subsidies, a Democratic demand that was ultimately not met in the deal. —Deputy News Editor, MSNBC Newsweek, 11 Nov. 2025

These subsidies will expire at year’s end without congressional action. —Arkansas Online, 11 Nov. 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