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

Car dealers noted that fewer people were shelling out for electric vehicles after federal tax subsidies expired.

Read more on The Wall Street Journal

Charlie Chesbrough, Cox Automotive Senior Economist, says “The headwinds from higher prices and fewer government subsidies for electric vehicles are finally slowing the market after a surprisingly strong previous six months.”

Read more on The Wall Street Journal

The government has rolled out targeted measures aimed at boosting purchases of cars, appliances and services, and local governments have experimented with coupons and subsidies.

Read more on MarketWatch

With subsidies for permanent housing reduced, advocates say 170,000 people could return to homelessness.

Read more on Los Angeles Times

The goal is for the store to become profitable without any government subsidy within three years.

Read more on The Wall Street Journal

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.