The Collaborative International Dictionary of English v.0.48:

Subsidize \Sub"si*dize\, v. t. [imp. & p. p. Subsidized; p.
   pr. & vb. n. Subsidizing.] [From Subsidy.]
   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.
   [1913 Webster]

         He employed the remittances from Spain to subsidize a
         large body of German mercenaries.        --Prescott.
   [1913 Webster]

WordNet (r) 3.0 (2006):

subsidize
    v 1: support through subsidies; "The arts in Europe are heavily
         subsidized" [syn: subsidize, subsidise]
    2: secure the assistance of by granting a subsidy, as of nations
       or military forces [syn: subsidize, subsidise]