He was a member of the Bnei Akiva Executive and World Secretariat, and Secretary-General of the National Religious Movement from 1986 to 1995.

He was the Rabbi of the Bnei Akiva Talmudic College in Kfar Maimon, and was among the initiators of the establishment of the Jewish quarter in Jerusalem, and one of the founders of the Israeli settlement of Elon Moreh in the West Bank.

[3] In April 2002, during Operation Defensive Shield, he resigned as leader of the NRP to make way for Effi Eitam, and was made Minister without Portfolio.

[2] He and Eitam subsequently left the NRP, and founded a new religious-Zionist party, Ahi, which joined the National Union alliance.

In December 2008, Levy announced that he was retiring from politics, stating that the decision was made due to the new Jewish Home party not holding traditional primary elections, but instead relying on an internet-based vote.