subsidy

[suhb-si-dee]

noun

plural

subsidies 

1. a direct pecuniary aid furnished by a government to a private industrial undertaking, a charity organization, or the like.

2. a sum paid, often in accordance with a treaty, by one government to another to secure some service in return.

3. a grant or contribution of money.

4. money formerly granted by the English Parliament to the crown for special needs.

subsidy

/ ˈsʌbsɪdɪ /

noun

1. a financial aid supplied by a government, as to industry, for reasons of public welfare, the balance of payments, etc

2. English history a financial grant made originally for special purposes by Parliament to the Crown

3. any monetary contribution, grant, or aid

subsidy

1. A grant made by a government to some individual or business in order to maintain an acceptable standard of living or to stimulate economic growth.

Other Word Forms

• antisubsidy noun
• nonsubsidy noun

Word History and Origins

Origin of subsidy¹

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

Word History and Origins

Origin of subsidy¹

C14: from Anglo-Norman subsidie, from Latin subsidium assistance, from subsidēre to remain, from sub- down + sedēre to sit

Synonym Study

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.

Example Sentences

Democrats said Republicans were punishing people by refusing to attach health insurance subsidies to the spending bill.

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She has voted with fellow Republicans to provide government funding without healthcare subsidies that Democrats want.

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EV production and a wave of federal subsidies for battery factories.

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In Japan and other countries, governments have offered child-rearing subsidies, tax breaks to families and a host of other benefits in an effort to arrest the fertility decline, all with limited effect.

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Republicans are proposing an extension of the current budget, with the same spending levels, while Democrats are calling for an extension of subsidies for health insurance for low-income households.

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Related Words

• aid 
• allowance 
• appropriation 
• assistance 
• bonus 
• contribution 
• endowment 
• financial aid 
• gift 
• grant 
• payment 
• pension 
• premium 
• scholarship 
• support 

When To Use

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.