The Knesset voted not to extend Israel's legal jurisdiction in Judea and Samaria today.
Coalition members Mazen Ghnaim of Ra'am and Meretz MK Ghaida Rinawie Zoabi voted against the law, while Yamina's Idit Silman was absent from the Knesset.
Along with a number of security concerns, this means Israeli citizens living in communities "outside of the Green Line" may stop receiving health insurance and individuals committing crimes within pre-'67 borders may be able to find refuge in Judea and Samaria.
Yesh Atid chairman Yair Lapid said the law would pass in the second round of voting.
"We'll come back stronger and get it passed," he wrote on his Twitter account.