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

And asking taxpayers to fund subsidies that could end up benefiting another country’s workers is not a winner on the campaign trail. — Chad P. Bown, Foreign Affairs, 1 Sep. 2026

Democrats withheld their votes first to pressure Republicans to extend expiring subsidies for health insurance premiums, prompting a 43-day shutdown that ended in November. — Sam Gringlas, NPR, 1 Sep. 2026

That has created shortages and long lines at gas stations, made worse by deep subsidies that encourage excess consumption. — Jason Ma, Fortune, 30 Aug. 2026

Costs for consumers in the Affordable Care Act marketplace have soared amid expiring ACA premium subsidies, and insurance affordability poses a political threat to Republicans during upcoming midterm elections. — Sarah Agostino, CNBC, 28 Aug. 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