The committee rejected an application to bar Otzma Yehudit, led by hardline National Security Minister Itamar Ben-Gvir, from taking part in the October 27 election.
On Wednesday, the committee voted 18 to five to exclude the conservative Islamist Raam party, led by Mansour Abbas, as well as the joint electoral list consisting of Hadash, Taal and Balad. Individual members of parliament were also barred.
The applications against the parties' participation included allegations that they supported armed struggle against Israel. The parties condemned the decision as "political, racist and anti-democratic."
The decisions on the electoral lists are not yet final and can be challenged before the Supreme Court. It is considered likely that the court will overturn them.
Opinion polls suggest that neither Benjamin Netanyahu's camp nor that of his opponents can count on an absolute majority in the pivotal October 27 election. The Raam party, if allowed to participate, could play the role of kingmaker.
Netanyahu and his allies have repeatedly questioned the participation of Arab parties in political alliances in Israel. Parts of the Jewish opposition also rule out a coalition with Arab parties.
Supporters of the exclusions cite security concerns and allegations that individual Arab politicians have not sufficiently distanced themselves from Palestinian organisations.
Critics of the Arab parties also point to some parties' refusal to recognise Israel as a Jewish state. The parties concerned argue that this definition discriminates against Israel's Arab minority.