The move comes amid a court case filed by the left-wing group Yesh Din in 2019 to force the state to evacuate the illegal modular yeshiva.
The event will be held under the title "Celebrating Jewish Independence on Homesh," marking the first such celebration since the repeal of the Disengagement Law a month ago.
The basis for the indictments against Rabbi Elishama Cohen and his colleagues and students, the 2005 Disengagement Law, was repealed on March 21.
Prime Minister Benjamin Netanyahu has said that he has no intention of allowing four settlements to be rebuilt.
Bush’s Road Map, which Israel signed onto in 2002 with reservations, called on the Jewish state to freeze all settlement activity including what was needed for natural growth.
Peace Now warned that the repeal of the Disengagement Law sends the message that "settler violence and Palestinian land theft is effective and appropriate."
Israeli security forces are reportedly preparing to evacuate the crowds of people.
Right-wing MKs praised the repeal of the Disengagement Law, while some are marking the return to Gush Katif as the next goal.
The bill passed the vote with 62 MKs supporting the bill and 36 voting against it. It will now move to one of the Knesset's committees before a first reading on the Knesset floor.
Yossi Dagan: "It is impossible to describe the excitement that comes as an injustice that has gone on for years is corrected.”