subsidy

noun

sub·​si·​dy ˈsəb-sə-dē How to pronounce subsidy (audio)
-zə-
plural subsidies
: a grant or gift of money: such as
a
: a sum of money formerly granted by the British Parliament to the crown and raised by special taxation
b
: money granted by one state to another
c
: a grant by a government to a private person or company to assist an enterprise deemed advantageous to the public

Examples of subsidy in a Sentence

The city is increasing subsidies for public transit. government subsidies for farmers in case of crop failure
Recent Examples on the Web
Examples are automatically compiled from online sources to show current usage. Read More Opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback.
Under the original version of the ACA, middle-income households were often priced out of the health-care subsidies. Ana Teresa Solá, CNBC, 23 May 2025 The air board said the third and final round of subsidies will be distributed next year, in a single online giveaway of some 9,000 vouchers. Jeff McDonald, Mercury News, 23 May 2025 Another low-income tax credit, a 9% credit, provides a larger subsidy but has historically been more competitive in Idaho. Rose Evans, Idaho Statesman, 23 May 2025 Globally, fossil fuel subsidies exceeded $7 trillion in 2022, according to the International Energy Agency. Dianne Plummer, Forbes.com, 22 May 2025 See All Example Sentences for subsidy

Word History

Etymology

Middle English subsidie, from Anglo-French, from Latin subsidium reserve troops, support, assistance, from sub- near + sedēre to sit — more at sub-, sit

First Known Use

14th century, in the meaning defined above

Time Traveler
The first known use of subsidy was in the 14th century

Browse Nearby Words

Cite this Entry

“Subsidy.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/subsidy. Accessed 3 Jun. 2025.

Kids Definition

subsidy

noun
sub·​si·​dy ˈsəb-səd-ē How to pronounce subsidy (audio)
-zəd-
plural subsidies
: a grant or gift especially of money
especially : a grant by a government to a private person or company or to another government to assist an undertaking thought helpful to the public

More from Merriam-Webster on subsidy

Last Updated: - Updated example sentences
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