Li chief is the entry level of the public officials elected by citizens and plays an important role in Taiwan’s local governance. One of the most important resources used by li chiefs is Li-Lin Infrastructure Funds. The goal of this paper is to investigate how the li chief allocates the funds based on the theory of distributive politics. The research focuses on the funds allocation in the Xin-Yi District between 2011 and 2014. Based on the interviews, the use of funds was classified into four categories. The results show that there were great variations in li chiefs’ fund allocation. Several factors, such as the characteristics of li, the features and the priorities of li chiefs, and political factors, had significant impacts on the allocation of funds. In addition, the li chiefs tended to allocate more funds on mutual attention team in the election year. The interviews show that the use of funds was dominated by the li chiefs, and li chiefs followed related government rules. However, the degree of public participation was low. As a result, this study provides two policy recommendations. First, the government should involve the citizens more in the decision process of the use of funds by adopting the form of participatory budgeting. Second, the amount of infrastructure fund for each li should vary in accordance with the characteristics of li.