ujm, it was not a pleasant chapter in yeshiva history. Rav Shach paskened that frumer yidden can join the government and take money therefrom. Previously, the frum parties (not including mizrachi, and Im not sure if shas was around yet) under the psak of the chazon ish, held that we were only allowed to be in the opposition, but not in the government itself. Rav Shach said that under Menachem Begin things were different and that the psak no longer applied. He also said that due to these changes, we were allowed to take money for yeshivos until 50% funding for a school.
Rav avrohom yehoshua was very upset at this, and said that his grandfather never would have allowed it. Even though rav shach was about 80 years old and rav avrohom yehoshua was in his 30’s, the former believed he was justified in opposing rav shach not on his own stature, but as a defender of the brisker rov.
This led to a major rift which continues to this day; briskers don’t get jobs in ponevezh.