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

• allocation
• allotment
• annuity
• appropriation
• entitlement
• grant
• subvention

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

On the chopping block are tax credits for residential rooftop solar installations, ending within 180 days of passage, and a subsidy for hydrogen production. —Sasha Rogelberg, Fortune, 18 June 2025

Moreover, the magnitude of the subsidy increased dramatically from 2019 through 2022, as its carbon price fell from -$62 to -$190. —Hersh Shefrin, Forbes.com, 18 June 2025

The development of event spaces with more than 50,000 square feet or with a seating capacity of 1,000 seats would similarly require voter approval, as would any development projects that receive a city subsidy, such as a gift of land or tax rebates. —Suhauna Hussain, Los Angeles Times, 17 June 2025

The language in the Senate bill is still expected to represent a massive cut to green subsidies, just not as dramatic a cut as in the House. —Rachel Frazin, The Hill, 17 June 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