Golda Meir of the Alignment formed the sixteenth government on 10 March 1974, including the National Religious Party and the Independent Liberals in her coalition, with 22 ministers.

Meir resigned on 11 April 1974 after the Agranat Commission had published its interim report on the Yom Kippur War.

The Alignment's Yitzhak Rabin formed the seventeenth government on 3 June 1974, including Ratz, the Independent Liberals, Progress and Development and the Arab List for Bedouins and Villagers.

During the Knesset term there were several defections from parties; In 1975 Aryeh Eliav left the Alignment and merged with Ratz to form Ya'ad - Civil Rights Movement.

The new party broke up the following year when Eliav and Marcia Freedman left to set up the Independent Socialist Faction, whilst Shulamit Aloni and Boaz Moav returned to Ratz.