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

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 legislation adds new rules that determine which electric models, and which consumers, qualify for a $7,500 tax subsidy that has been in place since 2009. Mike Colias, WSJ, 8 Aug. 2022 The government initiated massive subsidy programs in this era—federal payments went from 3 percent of farm income in 1929 to 31 percent in 1940—and almost all of the money went to wealthy white landowners. Dania Francis, The New Republic, 5 May 2022 Bell suggested that the city’s resources would be better spent on subsidy programs to help people afford their internet bills rather than bringing down costs overall. Camille Squires, Quartz, 4 May 2022 All of these states have existing business subsidy programs. James Hohman, Fortune, 21 Apr. 2022 This can include care that supports nontraditional work schedules, which can be difficult to get using existing subsidy programs. Elaine Maag For Cnn Business Perspectives, CNN, 11 Mar. 2022 Call it an employer investment or a business subsidy. Katherine Goldstein, Time, 18 Jan. 2022 The federal tax subsidy of $7,500 per vehicle is limited to 200,000 cars per U.S. automaker, and Tesla did reach that limitation in 2018. David Blackmon, Forbes, 7 Dec. 2021 Other cities in the Bay Area have similar shallow subsidy programs that help residents with their rent. Sarah Ravani, San Francisco Chronicle, 15 Nov. 2021 See More

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.

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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The first known use of subsidy was in the 14th century

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Last Updated

10 Aug 2022

Cite this Entry

“Subsidy.” Dictionary, Merriam-Webster, Accessed 11 Aug. 2022.

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More from Merriam-Webster on subsidy

Nglish: Translation of subsidy for Spanish Speakers

Britannica English: Translation of subsidy for Arabic Speakers Encyclopedia article about subsidy


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