Shaul Mofaz moved from the position of Defense Minister and received the Transport ministry in the new Cabinet installed on 4 May 2006. In 2008, with Israel's then prime minister, Ehud Olmert, being pressured to resign due to corruption charges, Mofaz announced that he would run for the leadership of the Kadima party. On 5 August 2008, Mofaz officially entered the race to be leader of Kadima. That same day he received a blessing by Shas spiritual leader Rabbi Ovadia Yosef. On 17 September 2008, he lost the Kadima party election, losing to Tzipi Livni for the spot of the Prime Minister
Tzipi Livni appointed Minister of Immigrant Absorption. She held this position until 2006. In 2004, Livni was appointed Minister of Housing and Construction, which she held this position until 2005. Livni was an avid supporter of Sharon's disengagement plan, and was generally considered to be among the key moderate members of the Likud party. She often mediated between various elements inside the party, and was integral to garnering government support for disengagement with the "Livni Plan". She made efforts to achieve a two-state solution to the Israeli–Palestinian conflict, including successful efforts to have the pullout from the Gaza Strip ratified by the