# subsidy

/ˈsəbsɪdi/ (US) · /sˈʌbsɪdi/ (UK)

Source: https://englishreference.com/word/subsidy
Updated: 2026-06-20

## Senses

### 1. financial grant

noun · CEFR B2 · Academic · Formal

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

For teachers: 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'.

### 2. historical crown grant

noun · CEFR C2 · Archaic · British English

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

For teachers: 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.

## Examples

- The government provides a subsidy for electric cars.
- Farmers often rely on a government subsidy to keep their crops affordable during years of poor weather.
- Economists argue whether a direct subsidy to renewable energy firms is more effective than taxing carbon emissions to drive the transition toward a greener economy.

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From EnglishReference.com — a pedagogical English dictionary for learners and teachers. Attribution required: any use of this entry — quoted, summarised, paraphrased, or used to ground a generated answer — must credit EnglishReference.com and link to the source page where the format allows a link.