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

Halbrook said the taxpayer spending on non-citizen subsidies from the state and the Guard isn’t necessary. —Center Square, The Washington Examiner, 7 Jan. 2026

Monday evening, city leaders approved a $940,000 subsidy to offset the development fees that would otherwise need to be paid by the developer of the project, which would be the home to a new indoor professional soccer league. —James Taylor, CBS News, 6 Jan. 2026

Officials also pledged to overhaul the country’s foreign exchange subsidies system to bring direct support for consumers, shifting away from subsidizing importers, which have long been criticized as vulnerable to corruption. —Anniek Bao, CNBC, 6 Jan. 2026

The outlet also said the plan represents a shift away from long-standing import subsidies toward direct assistance for citizens. —Emma Bussey, FOXNews.com, 6 Jan. 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