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

• 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

In their funding bill, Democrats included a provision to extend Affordable Care Act subsidies set to expire this year, warning that failure to act could lead to higher insurance premiums. —Brendan Rascius, Miami Herald, 6 Oct. 2025

Democrats have largely withheld votes from a short-term plan to fund the government, insisting Republicans engage with them on extending enhanced Obamacare subsidies. —Alexandra Banner, CNN Money, 6 Oct. 2025

Democrats have made healthcare the focus of their demands, urging Republicans to extend Affordable Care Act subsidies. —Sudiksha Kochi, USA Today, 6 Oct. 2025

Should an agreement be reached later in the year that includes the subsidies, premiums would be adjusted. —David Lightman, Sacbee.com, 6 Oct. 2025

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