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The poverty alleviation policies will be able to increase regional economic productivity that they can contribute to national income for developing countries. As one of the national programs expected to reduce poverty, village funds are expected to directly touch problem of poverty in rural areas. Based on the needs of each village, it is expected that priority of use and benefits can be received directly by the community. This research will look for implementation of village funds during 2015 until now in the East Java as one of the poverty alleviation programs. The research used qualitative descriptive, which is research that emphasizes the quality of the process rather than merely the final result. The method used in this study are in-depth interviews, observation and study of literature. As one of the programs expected to be able to reducee poverty, the majority of village funds in East Java are dominated by infrastructure with a labor-intensive approach for the poor people, so that they only have a short-term effect in the process of poverty reduction