subsidy

[ suhb-si-dee ]

noun

, plural sub·si·dies.

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 Words From

• anti·subsi·dy noun plural antisubsidies
• non·subsi·dy noun plural nonsubsidies

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

Overall, Amazon has received nearly $3 billion in subsidies from state and local governments.

From Fortune

She imposed a company-wide 30 percent pay cut on about 120 workers in July even after receiving tax cuts and employment subsidies from the government designed to help companies survive the pandemic.

From Ozy

It’s really about government subsidy and controlling the costs, which we’ve never done in this country.

From Nautilus

Sometimes, there is a co-pay, if the state subsidy doesn’t cover the full cost.

From Voice of San Diego

While there are wealthy condo owners excluded from the service and some low-income receive free collection, a law granting free trash to single-family homes is largely a subsidy for homeowners.

From Voice of San Diego

This welfare spending discourages work, increases taxes, and operates as a hidden and inefficient subsidy to low-wage businesses.

From The Daily Beast

Put another way, the subsidy gives the United States leverage over the decision-making of an important ally.

From The Daily Beast

We must discover a means of subsidy by which music and parallel arts may thrive unapologetically.

From The Daily Beast

Government ownership, operation, regulation, and subsidy of schools and colleges should be ended.

From The Daily Beast

The costs could be passed on to customers in the form of higher premiums and to taxpayers in the form of higher subsidy expense.

From The Daily Beast

As Frederick refused to give any pledge as to the terms on which he would make peace, the British government refused the subsidy.

From Project Gutenberg

We maun get another subsidy frae the Commons, and that will make ae compting of it.

From Project Gutenberg

Yes,” said the envoy, “and the only one among then who demands no subsidy.

From Project Gutenberg

You may call it a subsidy, or an imperial contribution; it is not a benefit, for the receiver cannot think of it without shame.

From Project Gutenberg

The history of the subsidy is instructive as to the tendencies of direct taxation in all countries.

From Project Gutenberg

Related Words

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

More About Subsidy

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.

Where does subsidy come from?

The first records of the word subsidy come from the 1300s. It ultimately derives from the Latin subsidium, meaning “auxiliary force,” “reserve,” or “help.”

Subsidies are often designed to help provide funds to companies in a particular industry, with the goal of helping that industry thrive—so it can provide jobs or otherwise stimulate economic growth. There are different kinds of subsidies, but the word is usually associated with government payments. Such payments are sometimes called government subsidies. The U.S. government grants subsidies to many industries, including to fossil fuel companies and military and automobile manufacturers.

Did you know ... ?

What are some other forms related to subsidy?

• subsidize (verb)
• antisubsidy (noun)
• nonsubsidy (noun)

What are some synonyms for subsidy?

• appropriation
• aid
• assistance

What are some words that share a root or word element with subsidy? 

 

• subsidiary
• subside

What are some words that often get used in discussing subsidy?

 

• payment
• industry
• company
• farm
• oil
• allowance
• support

What are some words subsidy may be commonly confused with?

• subsidiary
• subvention

How is subsidy used in real life?

Subsidy is most commonly associated with government payments to help certain industries.

NEW: To address losses caused by Trump trade war with China, $26 billion in farm subsidies were passed out, effectively emptying the subsidy bank. Now Congress has refilled it. w/ @SharonLNYT https://t.co/mE9E0oXKFj

— Eric Lipton (@EricLiptonNYT) March 28, 2020

#Coronavirus: The cost of taxpayer subsidies for jobs has topped £35bn, while the value of business loans underwritten by the govt has hit £45bn https://t.co/1LqyimoINm

— SkyNews (@SkyNews) July 7, 2020

 

https://twitter.com/jonatharden/status/1279811723759882241

Try using subsidy!

Is subsidy used correctly in the following sentence?

These subsidies may help billion-dollar corporations, but we should determine if they help everyday citizens.