bailout

American  

[beyl-out] / ˈbeɪlˌaʊt /

Or bail-out

noun

1. the act of parachuting from an aircraft, especially to escape a crash, fire, etc.

2. an instance of coming to the rescue, especially financially.

   a government bailout of a large company.

3. an alternative, additional choice, or the like.

   If the highway is jammed, you have two side roads as bailouts.

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adjective

1. of, relating to, or consisting of means for relieving an emergency situation.

   bailout measures for hard-pressed smallbusinesses.

bailout British  

/ ˈbeɪlaʊt /

noun

1. an act of bailing out, usually by the government, of a failing institution or business

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Etymology

Origin of bailout

First recorded in 1950–55; noun and adjective use of the verb phrase bail out

Explanation

When a business is in financial trouble and the government helps them, that's a bailout. In 2008, the U.S. Treasury provided bailouts to several big banks, insurance companies, and car manufacturers. Anyone receiving much-needed financial assistance gets a bailout, but the term is most often used when a large institution or corporation needs cash and the government provides it. When they face the threat of bankruptcy and failure, businesses appeal for an infusion of money. If the companies are seen as vital to the country's economy or infrastructure, the government may offer a bailout. The maritime origin of bailout describes scooping (or bailing) water out of a sinking boat.

Example Sentences

The legal mechanism for a bailout wasn’t immediately clear, though the report said the Transportation Department and Commerce Department are involved in the discussions.

From Barron's • Apr. 22, 2026

The difficulties are not nearly enough to need a bailout, he said.

From MarketWatch • Apr. 22, 2026

Reeling from a depressed economy, then an explosive greening problem, then hurricanes, they were soon going to the statehouse, desperate for bailout money.

From Slate • Apr. 20, 2026

Then came Chrysler’s sale to a private-equity company in 2007, followed by its bankruptcy, bailout and takeover by Italy’s Fiat, creating Fiat Chrysler Automobiles.

From The Wall Street Journal • Apr. 4, 2026

It was like a rerun of the first Coach bailout when he came and picked me up from school and I said pretty much those exact words.

From "Ghost" by Jason Reynolds