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

The higher rates coincide with the elimination of enhanced subsidies that made ACA insurance more affordable for millions of Americans. — Ken Alltucker, USA Today, 8 July 2026

Policy competition between major powers has, in some industries, tipped from productive to zero sum, subsidies that distort capital allocation by entrenching incumbents, and others creating punishing overcapacity. — Nili Gilbert, Forbes.com, 7 July 2026

If not for the subsidy, production for Donkey may not have been based in the state, DreamWorks COO Randy Lake said. — Winston Cho, HollywoodReporter, 7 July 2026

But the president’s team plans to campaign that its aggressive policy push has revitalized the economy by cutting subsidies, deregulating the foreign exchange market, and passing tax reforms. — Alexander Onukwue, semafor.com, 6 July 2026

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