Israel's Cabinet on Sunday approved budget cuts that pave the way for a controversial minister to establish a national guard, described by the opposition as a "private militia".
Ministers voted in favour of the cuts despite some opposition, Israeli media reported, with all ministries to be affected.
The costly move has been heavily criticised by many in the opposition.
Funds will be redirected for the establishment of a national guard under National Security Minister Itamar Ben-Gvir, one of the most polarising ministers in Israel's most right-wing government to date.
It follows weeks of unprecedented protests across Israel, with thousands rallying against judicial reforms set to vastly reduce the powers of the Supreme Court in favour of the government.
Opposition leader and former PM Yair Lapid has hit out at the move.
"The government approved horizontal cuts to fund Ben-Gvir's private militia. They will cut health, education, security, all to finance a private army of thugs for the TikTok clown," he said on Twitter.
Mr Ben-Gvir plans to establish a group of about 3,000 police officers as part of the guard, who will answer to him only.
Senior police and intelligence officials have also reportedly spoken out against the plans.
Israel's police commissioner Kobi Shabtai wrote to Mr Ben-Gvir last week, Israeli newspaper Haaretz reported on Sunday, calling the move "unnecessary, with extremely high costs that may harm citizens' personal security."
The guard may cause "heavy damage to country's internal security systems", he added, and asked to convene a cabinet meeting before making a formal decision.
Mr Ben-Gvir, who has been widely condemned for his anti-Palestinian views, claimed he was promised the national guard in exchange for allowing a pause to the judicial reforms, which have caused uproar in Israel.
Prime Minister Benjamin Netanyahu announced a pause to the legislation until after the Passover holiday following mass demonstrations.
Mr Ben-Gvir threatened to resign if the reforms, which still require several readings in parliament, were not passed.
“The reform will pass. The national guard will be established. The budget that I demanded for the National Security Ministry will pass in full,” he later tweeted.
The Prime Minister has not acknowledged such a deal.
