subsidy
Americannoun
plural
subsidies-
a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like.
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a sum paid, often in accordance with a treaty, by one government to another to secure some service in return.
-
a grant or contribution of money.
-
money formerly granted by the English Parliament to the crown for special needs.
noun
-
a financial aid supplied by a government, as to industry, for reasons of public welfare, the balance of payments, etc
-
English history a financial grant made originally for special purposes by Parliament to the Crown
-
any monetary contribution, grant, or aid
Usage
What does subsidy mean? A subsidy is a direct payment made by a government to a company or other organization as a form of assistance.To grant subsidies is to subsidize, and the process of doing so is subsidization. Governments that grant subsidies often provide them for particular industries, such as farming. The word is most commonly used to refer to such payments.More generally, subsidy can refer to any grant or monetary contribution. More specifically, it can refer to a payment made by one government to another for a particular service, often according to a treaty.Example: My company received a government subsidy to help expedite the manufacturing of healthcare products.
Related Words
Subsidy, subvention are both grants of money, especially governmental, to aid private undertakings. A subsidy is usually given to promote commercial enterprise: a subsidy to manufacturers during a war. A subvention is usually a grant to stimulate enterprises connected with science and the arts: a subvention to a research chemist by a major company.
Other Word Forms
- antisubsidy noun
- nonsubsidy noun
Etymology
Origin of subsidy
First recorded in 1325–75; Middle English subsidie, from Anglo-French, from Latin subsidium “auxiliary force, reserve, help,” equivalent to sub- sub- + sid-, combining form of sedēre “to sit” ( sit 1 ) + -ium -ium
Example Sentences
Examples are provided to illustrate real-world usage of words in context. Any opinions expressed do not reflect the views of Dictionary.com.
China Feihe moved early, announcing in 2025 a childbirth subsidy program backed by a 1.2 billion yuan internal fund, a sign that corporate strategy is already tracking the government’s fertility agenda.
From Barron's • Mar. 30, 2026
Tam expects profitability is likely to improve in 2026 as subsidy pressure eases.
From The Wall Street Journal • Mar. 27, 2026
"The fuel subsidy from the government isn't enough. It's for a two-day drive. So what happens after two days? Our situation now is worse than during the pandemic," Carlos said.
From BBC • Mar. 24, 2026
The KFF survey looked at those who still had ACA coverage after a tax subsidy expired at the end of 2025.
From MarketWatch • Mar. 20, 2026
Public subsidy allowed formats that had become financially unviable - such as the nineteenth-century symphony orchestra - to prosper somewhat artificially in the twentieth century, justified by the preservation of heritage.
From "The Story of Music" by Howard Goodall
Definitions and idiom definitions from Dictionary.com Unabridged, based on the Random House Unabridged Dictionary, © Random House, Inc. 2023
Idioms from The American Heritage® Idioms Dictionary copyright © 2002, 2001, 1995 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company.
