subsidy

American  

[suhb-si-dee] / ˈsʌb sɪ di /

noun

subsidies plural

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.

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subsidy British  

/ 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

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subsidy Cultural  

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.

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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” ( 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."

Example Sentences

A rural customer who gains access to goods once available only in cities doesn’t receive a subsidy check with Amazon’s logo on it.

From The Wall Street Journal • May 26, 2026

For New Orleans, this would mean the state funding about 48 ADAs, a cut of 42 percent to the subsidy.

From Slate • May 5, 2026

The government will also offer a subsidy so principal balances decrease by at least $50 a month.

From The Wall Street Journal • May 2, 2026

Gavi announced a $1 billion subsidy programme in 2024 to help potential African vaccine-makers get up and running.

From Barron's • Apr. 24, 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

Related Words

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