How to apply an overlay that is larger than the underlying view?

I am trying to create an overlay that is larger than the underlying view.

I tried to do this using the overlay() modifier, but the overlay does not seem to be allowed to extend past the bounds of the underlying view.

I realize that this is doable by pulling the overlay up in the hierarchy to a containing view with larger bounds and using a ZStack, but that breaks the flow I'm going for. I want the overlay to be self-contained within the smaller view that creates it (sort of like how the sheet() modifier works).

Is this possible in SwiftUI?