Subsidization

What Does Subsidization Mean?

Subsidization is the process by which one party receives financial assistance from another, typically a government, often in response to a recognized need or to benefit the population. Since subsidies are funded by tax dollars, elected officials typically decide who qualifies for them. For example, certain health coverage is subsidized, and lower-income individuals and families may be eligible for healthcare subsidies to help cover the cost of health insurance.

Insuranceopedia Explains Subsidization

Subsidization applies to various sectors, including public transportation, agriculture, food, housing, and more. Politically, those on the left generally support subsidization more than those on the right. Many Republicans and conservatives argue that tax dollars should not fund subsidies, believing instead that individuals and corporations should find ways to manage their own costs.