The aim of this research is to analyze the grant budgeting process.object research is Lumajang District Government including SKPD which manages grant spending. This research uses qualitative methods with a case study approach. Data collection techniques through observation, interviews and documentation. Data analysis techniques were carried out interactively continuously at the research stage until completion with the steps of data collection, data reduction, then data presentation. The aim of the research is to find out the grant expenditure budgeting process underlying Permendagri 77 of 2020. The results show that the grant expenditure budgeting process for each SKPD has based the provisions even though there are several obstacles, supporting the principlegood governance, in line with budget norms and principles, and in accordance with grant principles.