The United States and South Korea on Friday announced a new cost-sharing deal that would see Seoul spend more to host American troops.

State Department spokesperson Matthew Miller said the agreement was reached on a new five-year Special Measures Agreement with South Korea after eight rounds of negotiations.

“The agreement will be a significant accomplishment for both sides, and will strengthen our Alliance and our shared defense,” Miller said in a statement, noting it was the 12th such agreement the countries have struck.

The new deal will increase South Korea’s contribution to the American forces by 8.3 percent with additional increases every year linked to inflation, so long as price rises there stay around 2 percent annually, according to the Korean JoongAng Daily.

In 2026, the deal stipulates that South Korea will start its contribution at roughly $1.1 billion.

South Korean Foreign Ministry spokesperson Lee Jae-woong said tying the contribution to inflation rather than a defense budget growth brought down the potential for skyrocketing increases, according to the South Korean outlet.

The U.S. deploys more than 28,000 troops in South Korea, primarily to support the country against North Korean aggression as both sides remain in a frozen conflict, divided only by the demilitarized zone.

The new agreement comes as former President Trump, the Republican presidential nominee, is in a tight race for the White House against Vice President Harris, the Democratic nominee.

Trump has repeatedly said he wants South Korea to pay more for the positioning of American troops in the country, and has also made isolationist comments questioning support for other nations in conflicts, including Ukraine.