What does "subsidy" mean? Is it like a pension?

Native speaker’s answer
Rebecca
A subsidy is a kind of money grant given by government agencies to keep the cost of a good or service low (or affordable). For example, a government might provide monthly subsidies to low-income individuals so they can afford rent or food. Ex: I get food subsidies from the government because I can't afford it otherwise. Ex: If you are low-income, you can apply for subsidies from the government.