What does subsidize mean?
To subsidize something is to provide financial support that lowers its cost or helps keep an activity viable. Governments may subsidize public transport, housing, education, agriculture, or energy, while businesses may subsidize a product or service to make it more affordable or competitive. The word usually describes support paid directly to the provider or producer, though it can also mean generally backing an organization or undertaking. It is more specific than simply “support,” because it usually implies money or another material resource. The related noun is “subsidy,” while “subsidiary” has different grammatical meanings and should not be confused with the verb. The term is common in economic and public-policy contexts and can carry either a neutral policy description or a more critical implication that a supposed market activity depends on artificial support.
verbTo provide financial or other material support that reduces the cost of something. It can also refer to making an activity or organization financially viable through such assistance.
- To provide financial assistance that reduces the cost of a product, service, or activity.
- To support an organization, activity, or undertaking through financial or other material assistance.
"The government agreed to subsidize public transportation during the summer."
"The state provides grants to subsidize the development of renewable energy."
"Several businesses have asked the council to subsidize the construction of a new railway line."
To subsidize something is to help pay for it indirectly, lowering its cost without eliminating the price.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does subsidize come from?
The word comes from Latin subsidium, a word associated with assistance or support and originally connected with military reserves. English borrowed the related noun “subsidy” in the 15th century, and “subsidize” developed later in the 16th century. Related English words include “subsidiary,” “subside,” and “subsidence,” all linked through the Latin root.
Related word forms
How subsidize is actually used
The verb is commonly used in government policy, economics, education, and business. “Subsidize” can suggest direct financial assistance, whereas “subsidize the cost of” explicitly identifies what the assistance is intended to reduce.
Easily confused with subsidize
“Subsidise” is the standard British spelling of the same verb, whereas “subsidize” is the standard American spelling.
“Subsidiary” is an adjective meaning supplementary or subordinate, or a noun meaning a company controlled by another; it does not mean to provide financial support.