The statement indicated that Smotrich did not receive the assurances he demanded in an earlier meeting with Prime Minister Benjamin Netanyahu.
Even if Ben-Gvir and Smotrich oppose the deal, the agreement will still have a majority in government and is still likely to pass.
"In the past year, through our political power, we succeeded in preventing this deal from moving forward, time and time again," he noted.
According to the statement, the Prime Minister instructed the parties to reach finalized agreements within seven days.
The bill was part of the annual Economic Arrangements Bill, which accompanies the state budget and groups together all legislative amendments necessary to pass the budget.
Is this the kind of politics we want? Are these the kind of leaders we deserve? What kind of moral maggots represent us?
"Government bills from the National Security Ministry will be reviewed on their merits, and only urgent ones related to national security will be approved," Katz added.