When someone subsidizes something, they pay part of the cost so others can get it cheaper or even free. Governments subsidize school lunches so students from families without much money can still eat well during the day. A company might subsidize gym memberships for employees, paying half the cost so workers only pay half. Your parents subsidize your phone if they pay most of the bill while you chip in a small amount.

The person or organization doing the subsidizing believes the thing being supported matters enough to help pay for it. A city might subsidize public transportation to keep fares low and encourage people to use buses instead of driving. Universities subsidize research projects they think will lead to important discoveries.

A subsidy is the actual payment or support being given. Farm subsidies help farmers stay in business even when crop prices drop. Housing subsidies help families afford rent in expensive cities. The goal is usually to make something more accessible or to keep something valuable from disappearing.