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

For these utilities, climate tech isn’t about subsidies but solving real business problems. —Nicole Leblanc, Forbes.com, 1 July 2025

Working with Trump, Thune also worked to gut clean energy subsidies, many of which were leftovers from Joe Biden’s presidency. —Burgess Everett, semafor.com, 1 July 2025

The Senate version of the bill would totally repeal federal subsidies to the wind and solar industries for the projects placed in service after 2027. —Kevin Breuninger, CNBC, 30 June 2025

Affordable housing is a specific product type that relies heavily on a combination of local, state and federal subsidies. —Jennifer Van Grove, San Diego Union-Tribune, 30 June 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