English Reference

Word

subsidy

Phoneticssub·sidy

US/ˈsəbsɪdi/

UK/sˈʌbsɪdi/

Definitions

01financial grant

B2 · Upper Intermediate Countable noun Academic · Formal

n. money given by a government to help an industry or business so that prices stay low.

n. a financial contribution granted by a government or public body to support an enterprise or keep prices competitive.

“The government provides a subsidy to farmers to keep the price of milk low.”

“Agricultural subsidies remain a contentious issue in international trade negotiations, as they can distort market prices and disadvantage producers in developing nations.”

Usage

Often used with the verbs 'provide', 'receive', or 'cut'.

Antonyms

02historical crown grant

C2 · Proficiency Countable noun Law Archaic · British English

n. in the past, a tax or sum of money given by the British parliament to the King or Queen.

n. a historical grant of money to the British monarch by parliament for special purposes, often derived from a tax on property.

“The King requested a subsidy from parliament to pay for the upcoming war.”

“The monarch's reliance on parliamentary subsidies eventually led to a shift in the balance of power between the Crown and the legislature.”

Usage

Primarily encountered in historical or legal texts regarding the English constitution.

Synonyms

Collocations

Common phrases and expressions where native English speakers use the word “subsidy” in context.

Verb

01. grant a subsidy

“The local council decided to grant a subsidy to the struggling community theater.”

verb + noun

02. phase out subsidies

“The government plans to phase out subsidies for fossil fuels over the next decade.”

verb + noun

03. rely on a subsidy

“Many small-scale farmers rely on a government subsidy to remain competitive in the global market.”

verb + prep + noun

Adjective

04. cross subsidy

“The company uses a cross subsidy, where profits from luxury goods fund their basic product line.”

adj + noun

05. massive subsidy

“The aerospace industry received a massive subsidy to encourage the development of green technology.”

adj + noun

06. state subsidy

“Public transport is heavily dependent on a state subsidy to keep fares affordable for commuters.”

adj + noun

Noun

07. subsidy program

“The new housing subsidy program aims to help first-time buyers enter the property market.”

noun + noun

08. withdrawal of subsidies

“The sudden withdrawal of subsidies led to a significant increase in electricity prices.”

noun + of + noun

Real-World Examples

“Teachers’ salaries in France are only 56% of what they are in Germany – even as over €200bn in public subsidies finds its way annually to businesses.”
The Guardian 9 Oct 2026
“The proposals aim to protect EU industry from Chinese competitors by giving companies inside the bloc priority for public contracts and subsidies.”
BBC News 8 Oct 2026
“Childcare subsidies will be increased which will be worth up €2,220 (£1,882) per child per year.”
BBC News 6 Oct 2026
“Operating costs and subsidies were falling while the number of train services and passengers went up, he says.”
BBC News 12 Oct 2026

Etymology

From Middle English subsidy, subsidie, from Anglo-Norman subsidee, subsidie, from Old French subside, from Latin subsidium (support, assistance), from subsido from sub- (“below”) + sīdō (“sit”).

Etymology adapted from Wiktionary, available under CC BY-SA 4.0.

Word family

NOUN

subsidy(C1)

This entry

Exam level
CambridgeCambridgeCambridge English QualificationsThe exam suite from Cambridge University Press & Assessment, from A1 Movers up to C2 Proficiency. The benchmark names double as CEFR labels.C1 AdvancedIELTSIELTSInternational English Language Testing SystemThe 0–9 band test co-owned by the British Council, IDP, and Cambridge. Used for university entry, work, and migration.7.0–8.0TOEFL iBTTOEFL iBTTest of English as a Foreign Language, Internet-Based TestETS's academic English test, the standard route for US university admissions. Scored 0–120, with a 1–6 scale since 2026.1–6 scale: 5.0–5.595–113TOEICTOEICTest of English for International CommunicationETS's workplace English test, big in Japan and Korea. Listening & Reading scores 10–990 and tops out at C1.945–990
Frequency
Frequent
Level
C1 · AdvancedOxford
Updated

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English Reference