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What is a subsidy?

What is a subsidy? Here are some definitions.

Noun
  1. Financial support or assistance, such as a grant.
  2. (dated) Money granted by parliament to the British Crown.
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Examples
The government's plan to reform the subsidy system is running into fierce opposition.
Does it make sense to give each of us a subsidy, when we can perfectly well afford the full price?
But already there's a note of warning from those accused of maladministering the subsidy.
The operators later changed their minds after the administration rejected their demand for the subsidy.
Spring linseed lags some way behind now that the subsidy it attracts has been reduced.
Witney woolmen in the early 15th century included John Hood, a subsidy commissioner and possibly a merchant of the Staple.

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