It did so as a result of the political pressure wielded by the ultra-Orthodox factions, who make up 8 percent of the Israeli population.
First, the ultra-Orthodox urged that repair work must not be done on Israel’s railroads during the Sabbath. Netanyahu agreed and ordered all such work stopped.
Second, the ultra-Orthodox insisted on the cancellation of the agreement reached to create a distinct area of the Western Wall that dedicated for egalitarian prayer, (which, incidentally had been approved by this current government) and this long and fiercely negotiated, good-faith compromise was set aside.
Third, the ultra-Orthodox demanded that only conversions done under their auspices be recognized by the state, and now a new law was approved by the government makes that so. The second two decisions have provoked outrage in the American Jewish community.
A bit of explanation is necessary to clarify who the ultra-Orthodox are.
Ultra-Orthodox sects of Judaism developed in 18th century Europe, as a response to the Enlightenment. The Enlightenment and the Emancipation allowed Jews to become integrated in the larger European society, without having to convert to Christianity.
Jews responded in a number of ways. Many Jews became secular, while others founded Reform Judaism, which was an early attempt to integrate Judaism into a largely Christian world.