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subsidize

SUB-sih-daiz /ˈsʌbsɪdaɪz/

verbB2GREIELTSTOEFLGMAT

formalpoliticalfinancial

To support an enterprise or activity financially, typically by a government or organization, to keep prices low.

Implies offset costs provided systematically by a authority or parent institution rather than casual gifting.

The story behind the word. From Latin 'subsidium', which originally denoted military reserves standing by behind the main lines ready to aid when needed ('sitting behind'). In late medieval Europe, the term shifted to financial support granted by parliament to the crown during emergencies, eventually morphing into modern state financial relief.

Word relationships

fund: Fund means supplying general money for a project, whereas subsidize specifically means offsetting costs to reduce consumer prices.
underwrite: Underwrite implies assuming financial risk or liability, whereas subsidize is direct financial aid.

tax: Taxing charges a financial penalty or duty rather than granting aid.
defund: Defund means completely withdrawing monetary support from an institution.

Commonly confused with

finance: Financing involves supplying capital with expectation of repayment or return; subsidizing is aid given to lower end prices.

Word family

subsidy (noun): A sum of money granted by the state or a public body to keep prices low.
subsidization (noun): The act of providing financial subsidies.

Collocations

heavily subsidize
subsidize agriculture
subsidize housing
subsidize tuition

Example sentences

"Governments often subsidize public transportation to reduce urban traffic congestion and lower emissions." Public policy literature
"The federal decision to subsidize local grain production sheltered farmers from international price volatility." Agricultural policy debate

Memory hook

SUB (under) + SIDE = financial support sitting under you to keep you from falling financially. Subsidize = Sit underneath with monetary support.

When not to use

Do not use for personal gifts between friends or private commercial purchases at regular price.

Fun facts

In ancient Rome, a 'subsidium' was literally the third line of soldiers kept in reserve during military battles.