The Dutch government green-lighted a massive defense spending hike as NATO allies scramble to hit huge new targets pushed by U.S. President Donald Trump.

The caretaker coalition agreed to raise its defense spending to 3.5 percent of gross domestic product (GDP), with an additional 1.5 percent allocated to infrastructure that supports military readiness, public broadcaster NOS reported Friday.

While they did not provide a timeline for reaching the goal, the plan brings the Netherlands in line with a new NATO spending framework proposed by Secretary-General Mark Rutte, aiming for a combined total of 5 percent of GDP. 

The announcement comes soon after the Dutch government collapsed, leaving a caretaker administration in place before an election in the fall.

Defense Minister Ruben Brekelmans called the shift a “historic decision,” highlighting its importance amid rising tensions with Russia and broader calls for European defense autonomy.

The proposed increase bows to ongoing pressure from Trump, who has urged NATO allies to raise their defense contributions or risk a diminished American role in the military alliance. 

The plan is expected to be discussed and potentially adopted at the NATO summit in The Hague on June 24 and 25. According to NOS, the estimated €16-19 billion in annual costs has not yet been budgeted and will be left to a future coalition to resolve.