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

There are continuing talks in Washington about extending the subsidies in the Affordable Care Act, but a plan has not emerged. —State House News Service, Boston Herald, 25 Nov. 2025

Tinubu’s two-year presidency has focused on fixing Nigeria’s ailing economy by cutting fuel subsidies, engineering a return to orthodox monetary policy at the central bank, taming inflation, and introducing a new tax regime. —Alexander Onukwue, semafor.com, 24 Nov. 2025

The proposal would require a minimum premium payment and limit eligibility for the subsidies, which come in the form of tax credits, to enrollees with income up to 700% of the federal poverty line, the report said. —Jason Ma, Fortune, 24 Nov. 2025

If the subsidies expire, the premiums people pay are expected to more than double next year, according to KFF, a nonpartisan health policy research group. —Tricia Escobedo, CNN Money, 24 Nov. 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