If the bill passes, Israel would face its second election campaign in a matter of months.
Prime Minister Binyamin Netanyahu appeared to have a clear path to a majority coalition after his Likud party secured 35 seats in 9 April elections and was set to become Israel's longest-serving prime minister, surpassing David Ben-Gurion, the country's founding father.
But his prospective government has been thrown into crisis in recent days with former Defense Minister Avigdor Lieberman refusing to bend to the demands of the ultra-Orthodox Jewish parties. He insists on passing a new law mandating the military draft of ultra-Orthodox men.
Lieberman said Monday he will not cave and prefer new elections instead. Without him, Netanyahu has no majority.