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From: Webster's Revised Unabridged Dictionary (1913)

 Sub·si·dize v. t. [imp. & p. p. Subsidized p. pr. & vb. n. Subsidizing ]  To furnish with a subsidy; to purchase the assistance of by the payment of a subsidy; to aid or promote, as a private enterprise, with public money; as, to subsidize a steamship line.
    He employed the remittances from Spain to subsidize a large body of German mercenaries.   --Prescott.