The move further pushed the country toward an unprecedented political impasse, less than two months after elections seemed to promise Prime Minister Benjamin Netanyahu a new mandate.
If the bill receives final passage in a vote scheduled Wednesday, Israel would be forced to hold new elections — sending the political system into disarray.
Netanyahu appeared to have a clear path to victory, and a fourth consecutive term, after the April 9 elections. His Likud party emerged tied as the largest party in the 120-seat parliament, and with his traditional allies, he appeared to control a solid 65-55 majority.
But he has struggled to form a government ahead of a looming deadline to do so. His prospective coalition has been thrown into crisis in recent days by former Defense Minister Avigdor Lieberman, an ally and sometimes rival of Netanyahu's.