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sub·si·dize / ˈsəbsəˌdīz/ • v. [tr.] support (an organization or activity) financially: it was beyond the power of a state to subsidize a business. ∎  pay part of the cost of producing (something) to reduce prices for the buyer: the government subsidizes basic goods including sugar, petroleum, and wheat.DERIVATIVES: sub·si·di·za·tion / ˌsəbsədiˈzāshən/ n.sub·si·diz·er n.