After all-night talks on the remaining details, Likud and Jewish Home signed a final coalition deal on Thursday morning.
Late Wednesday night, hours before the deadline to form a government, the two parties announced a deal struck "in principle," allowing Jewish Home to enter the coalition and Prime Minister Binyamin Netanyahu to serve a fourth term as premier.
Netanyahu then notified President Reuven Rivlin that he had succeeded in the task bestowed upon him of forming a new government.
According to the final deal fleshed out Thursday, Jewish Home chairman Naftali Bennett will be appointed both Education Minister and Diaspora Affairs Minister, as well as a member of Netanyahu's security cabinet.
MK Ayelet Shaked (Jewish Home) will be appointed Justice Minister and head the Knesset Constitution, Law, and Justice Committee. She too will serve as a member of Netanyahu's security cabinet.
MK Uri Ariel (Jewish Home) will become Agriculture Minister and be given responsibility over the World Zionist Organization Settlement Division, effectively the legal liaison between the government and Jewish residents of Judea and Samaria.
A Jewish Home MK will also be appointed Deputy Defense Minister with responsibility for the Civil Administration.
According to the coalition deal, the education budget will be increased by NIS 630 million, and a billion shekels will be allocated to increasing the salaries of IDF soldiers in their third year of military service. An increased budget has also been promised to Ariel University in Samaria.
Legislation-wise, Likud has promised to promote the Law of Non-Profit Associations, allow people with disabilities easier access to educational institutions, and increase security for transportation in Judea and Samaria.
"After a sleepless night, we've completed the coalition agreement with Likud to pave the way for a new government. We're going to work," Shaked said, after signing the finalized deal.