The Jetten Cabinet: What the New Dutch Government Means for Expats
The Jetten cabinet, the Netherlands’ new government, took office on 23 February 2026 after one of the more turbulent periods in recent Dutch political history. Led by Prime Minister Rob Jetten of D66, it is a minority coalition of D66, the VVD, and the CDA, holding just 66 of the 150 seats in the House of Representatives. It is the first Dutch minority government without a formal confidence and supply agreement since 1918.
For expats living in or moving to the Netherlands, several of the new government’s plans have direct implications, from healthcare costs and housing to the 30% ruling and immigration rules.
How Did We Get Here?
The Jetten cabinet follows the collapse of the Schoof cabinet, which lasted less than a year. Formed in July 2024 after the 2023 elections, the Schoof coalition brought together the PVV, VVD, NSC, and BBB. It fell apart in June 2025 when the PVV withdrew from the coalition over disagreements on asylum policy, triggering new elections.
In the October 2025 elections, D66 and the PVV each won 26 seats, with D66 winning more votes. D66 leader Rob Jetten, 39, was given the task of forming a new government. After 117 days of negotiations, considerably faster than the 223-day process that produced the Schoof cabinet, D66, VVD, and CDA presented their coalition agreement on 30 January 2026. The new cabinet was sworn in by King Willem-Alexander on 23 February 2026.
Rob Jetten becomes the Netherlands’ youngest-ever prime minister. Dilan Yeşilgöz of the VVD serves as Deputy Prime Minister and Minister of Defence. CDA’s Bart van den Brink takes the asylum and migration portfolio as second Deputy Prime Minister.
Key Policy Areas
Housing
Housing is one of the new government’s stated priorities. According to the government’s coalition agreement, plans include designating 30 locations across the country for new neighbourhoods and towns, making it easier to split existing homes or add floors to buildings, and reducing the ability to block new housing projects through lengthy objection procedures.
From 2029, the government has committed to investing €1 billion per year in affordable housing. Annual income checks will be introduced to determine rent increases for existing tenants, and wealth tests will apply to new social housing applicants.
The mortgage interest deduction, which the IMF has criticised for pushing up house prices, will not be accelerated in its phase-down under the new coalition. The current trajectory, which has been reducing the benefit by three percent annually since 2020, will continue unchanged.
Healthcare
The new government plans to raise the mandatory health insurance deductible (eigen risico) from €385 to €460 in 2027. This is a reversal of the previous government’s intention to reduce it. The increase will affect all adults in the Netherlands. Lower-income earners will see a higher zorgtoeslag (healthcare allowance) to partially offset the rise.
The 30% Ruling
The coalition agreement explicitly states that the expatregeling will not be tightened. For highly skilled migrants relying on the 30% ruling, this is a significant reassurance after years of political pressure on the scheme. The ruling rate does drop from 30 to 27 percent from January 2027, but that change was already legislated before this government took office.
Asylum and Migration
The new government has taken a more moderate approach to asylum compared to its predecessor. Most of the Schoof cabinet’s stricter asylum measures remain in place, but the plan to require ten years of residency before naturalisation has been scrapped. The government has said it aims to reduce the influx of new arrivals while ensuring decent reception facilities.
Education and Defence
Planned cuts to universities are being shelved, with €1.5 billion committed to research and science. This follows the restoration of €565 million in university research funding announced earlier in 2026. On defence, €19 billion in additional spending is planned over the coming years, with the armed forces set to grow to 122,000 personnel.
Governing as a Minority
The most significant challenge facing the Jetten cabinet is its minority status. With only 66 seats, it needs to build support from other parties in parliament for every piece of legislation. The Atlantic Council has noted that how the government handles this will serve as a test of minority governance in a highly fragmented political environment.
The Netherlands Institute for Social Research (SCP) has warned that several of the government’s commitments on healthcare and asylum will be difficult to fulfil, and that planned budget cuts risk increasing inequality among vulnerable groups.
Prime Minister Jetten has framed the project as a cabinet of collaboration, one that will work across party lines in parliament as well as with social partners and industry. Whether that approach can sustain a minority government through a full term remains to be seen.
What It Means for Expats
The clearest takeaways for expats are:
- The 30% ruling is safe under this government and will not be tightened beyond the already-legislated rate reduction to 27 percent in 2027
- Healthcare costs will rise as the eigen risico increases to €460 in 2027
- Housing investment is coming but not until 2029, and the shortage will remain acute in the near term
- Naturalisation rules are easier under the new coalition, with the ten-year residency requirement scrapped
- University funding is increasing, which benefits international students and researchers
Summary
The Jetten cabinet represents a shift from the populist right of the Schoof era back towards a centrist, pro-European direction. It is governing in difficult circumstances, a minority government with no formal parliamentary support agreements, navigating a housing crisis, a contested asylum debate, and growing defence commitments. For expats, the key news is that the 30% ruling is protected, healthcare deductibles are going up from 2027, and housing investment is on its way, though not quickly enough to ease the pressure in the near term.
