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

• 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

But if these subsidies remain in force, insurers will continue to get rich at the expense of ordinary taxpayers—and Obamacare’s dysfunction will continue to reign in the health insurance market. —Sally Pipes, Forbes.com, 15 Sep. 2025

The analysts said that this was likely driven by Apple's price cut to the model versus the iPhone 16 base, and additional subsidies from the Chinese government. —Morgan Chittum, CNBC, 15 Sep. 2025

That sets up a showdown over expiring Obamacare subsidies and other health-care funding priorities, with Democrats vowing to block any measure that ignores them and some moderate Republicans signaling openness to a deal to avoid steep premium hikes for millions of Americans. —Nino Paoli, Fortune, 14 Sep. 2025

Democrats would be unlikely to agree to any changes in the subsidies, increasing the chances of a standoff and mounting uncertainty for health insurers, hospitals, state governments and the people who receive them. —Arkansas Online, 14 Sep. 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