This study investigates the political influence on proposal-based intergovernmental transfer allocations. Indonesia, a decentralized nation with a developing intergovernmental transfer system, provides interesting data for this issue. Using sharp Regression Discontinuity (RD) design, this seminar examines how past election districts’ presidential electoral share affects capital grant allocation. The study finds that incumbent-losing districts got 35 to 56 percent more capital grants than incumbent-winning districts, depending on the types of grants. In addition, these losing districts also receive 41 to 58 percent higher health and agricultural sectoral allocations. Lastly, the study argues that intervention from the legislative explains how political interest manifests in the allocation.