How do subsidies work?
There are many kinds of subsidies, and they happen at almost every level of government. Governments typically set aside a certain amount of money in the form of grants or direct transfers for programs they want to help fund.
For example, the government often gives housing vouchers to help pay for housing, or it may subsidize school lunches so children from certain families don't have to worry about paying for lunch. However, subsidies aren't given only to individuals or those in need.
Some industries receive considerable subsidies from the government, too. For example, agricultural subsidies are common to help farmers stay in business. If a business is a vital interest, it is much more likely to be subsidized. Another industry the federal government now subsidizes is semiconductor manufacturing to ensure the country has an adequate supply of chips in case of geopolitical disruption.