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 Among other actions, Hogan’s proposal to the board slashes a $125 million subsidy to Metro, eliminates some aviation divisions and sells off aircraft, as well as cuts 92 vacant jobs. Washington Post, "Maryland Democrats poised to reject part of Hogan’s budget cuts," 30 June 2020 The Arizona Republican last week introduced the American Tax Rebate and Incentive Program Act, or TRIP Act, offering a subsidy for Americans who travel anywhere in the U.S. that is more than 50 miles... The Editorial Board, WSJ, "The GOP’s Lampoon Vacation," 29 June 2020 Meanwhile, problems abound with the way the subsidy money is distributed to families. Lillian Mongeau, USA TODAY, "High-quality daycare is too expensive. Government subsidies are making it worse.," 28 June 2020 In terms of the share of population reached, Botswana’s relief package, comprising of food distribution schemes, a wage subsidy for businesses and prize freezes on essential items, is expected to have the widest impact. Yomi Kazeem, Quartz Africa, "African governments are being forced to develop social welfare programs in an economic crisis," 23 June 2020 The European Commission will lay out a menu of options to counteract forms of state subsidy including tax breaks, capital injections by governments, debt relief and preferential financing terms. Aoife White,, "EU Outlines New Powers to Protect Firms From Chinese Takeovers," 23 June 2020 The proposal would have allowed retail and food service businesses with fewer than 50 employees to get a payroll subsidy from the state. Washington Examiner, "Edwards signs $300M grant program bill for businesses affected by COVID-19," 16 June 2020 The plan also includes a larger subsidy for the purchase of an EV on the vehicle side. Roberto Baldwin, Car and Driver, "In Germany, All Gas Stations Will Be Required to Provide EV Charging," 5 June 2020 The administration is expected as early as Tuesday to ask County Council to approve the $7.9 million subsidy to cover $1.4 million in property taxes and $6.5 million in debt payments that would typically come from hotel’s own revenues. Courtney Astolfi, cleveland, "$7.9 million taxpayer bailout proposed for Hilton Cleveland Downtown hotel," 18 June 2020

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

4 Jul 2020

Cite this Entry

“Subsidy.” Dictionary, Merriam-Webster, Accessed 5 Jul. 2020.

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More Definitions for subsidy


How to pronounce subsidy (audio)

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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