subsidy
Americannoun
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subsidies
plural
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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.
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a grant or contribution of money.
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money formerly granted by the English Parliament to the crown for special needs.
noun
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a financial aid supplied by a government, as to industry, for reasons of public welfare, the balance of payments, etc
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English history a financial grant made originally for special purposes by Parliament to the Crown
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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.
Synonym Usage
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
Derived Forms
Inflected Forms
Nouns
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” ( see sit 1) + -ium -ium
Explanation
A subsidy is a grant of financial assistance. Many school districts, for example, offer a subsidy to low-income families for book fees and lunch costs. The family pays a set amount and the district makes up the difference. The noun subsidy comes from French and Latin roots that mean "help and aid." Subsidies are most often offered by the government, but individuals can offer subsidies as well. "The parents offered to give a subsidy for students to go on the ski trip. The deal was that if the kids earned half the money, the parents would pay for the other half."
Vocabulary lists containing subsidy
Fast Food Nation
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The Omnivore's Dilemma
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The Great Depression and The New Deal
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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.
See Examples For:
The subsidy system first began to show cracks during the so-called Special Period in the early 1990s.
From Barron's ● Oct. 9, 2026
Abubakar has floated a plan for a "targeted" subsidy, described as "capped and budgeted production support tied to fuel refined in Nigeria" to help bring down prices at the pump.
From Barron's ● Oct. 8, 2026
The mortgage subsidy of 1 percentage point will run for one year and applies to homes that are less than 120 square meters and valued at less than $223,000.
From The Wall Street Journal ● Oct. 8, 2026
That implied that the effect of the subsidy terminations had slowed, in the view of market analysts at Cox Automotive.
From Los Angeles Times ● Oct. 8, 2026
Stuttering, Garcia managed to make his plea: he had completed high school in San Lucas and wanted a recommendation to the police academy and a government subsidy to pay for his studies.
From "The House of the Spirits: A Novel" by Isabel Allende
Rations were further curtailed in 2008, when reformist ex-president Raul Castro eliminated what he called "undue subsidies and freebies" such as cigars, toothpaste and oil.
From Barron's ● Oct. 9, 2026
Finance Minister Taiwo Oyedele said the measures were aimed at easing pressure on households and businesses while avoiding a return to fuel subsidies.
From Barron's ● Oct. 8, 2026
Production workers in Los Angeles have felt a double whammy as other states and countries have offered generous tax subsidies that have pulled productions from L.A.
From Los Angeles Times ● Oct. 2, 2026
China will offer 1-percentage-point interest subsidies on eligible first-home mortgages starting October 1 to help revive home sales.
From The Wall Street Journal ● Sep. 29, 2026
Until the 1990s, North Korea’s economy was largely held together by subsidies from the Soviet Union.
From "Escape from Camp 14: One Man's Remarkable Odyssey from North Korea to Freedom in the West" by Blaine Harden
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.
