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

Last week, the House did pass legislation to extend the expired subsidies, and negotiations have moved to the Senate. —Blake Farmer, Miami Herald, 13 Jan. 2026

The loss of enhanced subsidies means annual premium costs will more than double for the average ACA enrollee who had them, according to the healthcare research nonprofit KFF. —Ali Swenson, Los Angeles Times, 13 Jan. 2026

However, rather than lower healthcare costs for Americans, Democrats want to simply extend a COVID-era Affordable Care Act (ACA) subsidy, rife with fraud, to the tune of $400 billion over the next ten years. —Ken Calvert, Oc Register, 13 Jan. 2026

The European Commission said Chinese EV manufacturers may replace tariffs with price undertakings only if those commitments fully offset the effects of state subsidies. —Aamir Khollam, Interesting Engineering, 12 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