A subsidy is a grant of financial assistance. Many school districts, for example, offer a subsidy to low-income families for book fees and lunch costs. The family pays a set amount and the district makes up the difference.
The noun subsidy comes from French and Latin roots that mean "help and aid." Subsidies are most often offered by the government, but individuals can offer subsidies as well. "The parents offered to give a subsidy for students to go on the ski trip. The deal was that if the kids earned half the money, the parents would pay for the other half."
