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:
Just under 30% of the profit in 2025 came from public subsidy to farmers.
From BBC ● Aug. 20, 2026
Elected in 2023, Tinubu has used his first term to push through ambitious economic reforms, including ending a costly fuel subsidy that for years had indirectly suppressed prices throughout the economy.
From Barron's ● Aug. 19, 2026
“Wellpointe will also support the financing with its own capital in lieu of any direct subsidy from the city of Los Angeles,” he said.
From Los Angeles Times ● Aug. 18, 2026
The amount depends on where your son lives, his age, the plan he selected, whether he is eligible for a subsidy, whether you claim him as a tax dependent, your household MAGI, among other factors.
From MarketWatch ● Aug. 17, 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
Mamdani’s plan would offer a core basket of staples at a 30% discount to market rates, with operators receiving free rent and subsidies.
From The Wall Street Journal ● Aug. 24, 2026
Carney said Canadian subsidies for Francophone culture, the role of Francophone online media and bilingual labeling of products sold in Canada were among the issues at stake.
From Barron's ● Aug. 24, 2026
Bass’ campaign spokesperson, Alex Stack, cited the sluggish start to the program and said subsidies are only a small part of the fight against homelessness.
From Los Angeles Times ● Aug. 23, 2026
Nor are they eligible for federal ACA Marketplace subsidies.
From MarketWatch ● Aug. 22, 2026
Expenditures on public housing have fallen since the 1980s, and the expansion of public rental subsidies came to a halt in the mid-1990s.
From "Nickel and Dimed: On (Not) Getting By in America" by Barbara Ehrenreich
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.
