The proposed law is to throw them in jail for refusing to serve in the army. That is why Likud and Bayit Yehudi enacted (BTW, the numbers are almost the same in the new Kenesset as in the old one, Nationalists and Hareidim are a majority – Yesh Atid could have been dumped at anytime).
And when you no government benefits, do you realize that in many areas (including housing and health care) Israel is still very socialists – the benefits include whether you can get health care and live in a house. And unless you agree it is motivated by bigotry, why do the zionists want to give all sorts of benefits to Palestinians who actively oppose the state, rather than to Jews who simply want to live in Eretz Yisrael in peace.
To understand Israeli hareidim, the compatible groups in American history would be African Americans during the Jim Crow era.