In response to this, Iran complained to the UN Security Council about the US sanctions and accused Washington of breaching the nuclear deal.
Parliamentarians approved the outlines of the bill to "counter America's terrorist and adventurist actions in the region" as some chanted "Death to America" after the vote results were announced.
Iran's parliament has overwhelmingly voted to increase spending on Tehran's ballistic missile programme and the elite Revolutionary Guards in retaliation for new sanctions imposed by the United States.
Parliament Speaker Ali Larijani said the parliament's vote to approve the motion was just the first step, adding that if Washington proceeds with its anti-Tehran policies, the law will take effect.
The budget bill allocates $260m for the continuing development of the missile programme and $260 million for the Quds Force, Irna news agency reported.
Pastor freed by N. Korea on way to Canada
President Trump and North Korean officials this week are exchanging bellicose words over the regime's nuclear missile program. Lim was serving a life sentence of hard labor after being convicted of crimes against the state in December 2015.
The Iranian parliament voted Sunday for allocating $520 million on the development of its own missile program in response to USA sanctions, Agence France-Presse (AFP) reported.
Deputy Foreign Minister for Legal and International Affairs Seyyed Abbas Araqchi said the government fully supports the new law passed by the parliament against the U.S. terrorist and adventurous measures in the region, describing it as a "wise" and "appropriate" move against Washington's enmities towards Iran.
Tehran says the measures violate a 2015 deal with world powers that eased sanctions in exchange for curbs on its nuclear programme.
He reminded members of parliament that the government backed the bill, which he said "was designed wisely so that it does not violate the (nuclear deal) and provide excuses for opposing sides", reported. Tehran says its missile program does not breach a United Nations resolution which endorsed the nuclear deal.