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contingency fund

/kənˈtɪn.dʒən.si ˈfʌnd/ · con·tin·gen·cy fund
noun
  1. A reserve of money set aside by an organization or government to cover unexpected expenses or emergencies. The municipality created a $10 million contingency fund to address any sudden infrastructure repairs.
  2. A specific fund established to provide financial assistance when a predefined contingency, such as a natural disaster, occurs. After the hurricane, the state tapped its contingency fund to reimburse affected homeowners.
Did you know? The United States Constitution authorizes a federal contingency fund, and the United Kingdom’s Contingencies Fund, created in 1974, is the oldest continuously used emergency reserve in modern government.
Written by Lexi Wordsworth, Dictionary Editor 0 lookups Added Jul 21, 2026