Israeli Prime Minister Naftali Bennett was dealt a blow on Tuesday when his broad coalition failed to renew a law barring Palestinians from Gaza or the occupied West Bank from gaining residency or citizenship through marriage. The parliamentary vote on the controversial law was seen as a test for the nascent coalition of hardline nationalist Mr Bennett, which comprises eight parties from across the political spectrum. The legislation has been renewed annually since coming into force in 2003, during the second Palestinian Intifada, or uprising, and still has widespread support among politicians. But it is set to expire at midnight on Tuesday after Mr Bennett failed to muster the necessary 61-vote majority on the parliamentary floor. The outcome after an overnight parliamentary session was hailed as a “victory for tens of thousands of families” by Ayman Odeh, who leads the opposition Arab-led Joint List in the Parliament. Under the legislation, Palestinians from Gaza or the West Bank who wed Israelis have no right to live permanently with their spouses. Palestinian women over 25 and men over 35 can apply for a temporary permit for family reunification in Israel, a lengthy process that must be renewed every two years. The legislation largely affects Israelis of Palestinian descent, known as Arab-Israelis, who make up about 20 per cent of the population. “We hope that after the vote today, the Israeli government will now accept and process family unification applications from Palestinians, with fair, substantive and prompt consideration,” said Adalah, an organisation that campaigns for the rights of Arab-Israelis. Proponents of the law say it is necessary for the country’s security and to maintain a Jewish majority. Rights groups argue the sweeping ban is discriminatory and that thorough checks on individual residency or citizenship applications are sufficient. Although the law was repeatedly renewed during the 12-year tenure of Benjamin Netanyahu, the former prime minister ordered his Likud party to vote down the legislation in order to rattle the coalition. They were joined by Amichai Chikli, a legislator from the prime minister’s Yamina party, who rebelled and voted down the law. Two members of Ra’am, the Arab party within the coalition, abstained. The vote came after the government tabled a compromise under which the law would be extended for six months and about 1,600 Palestinians with Israeli spouses would be granted residency.