Brazil's Congress has rejected a proposed constitutional amendment that was a key grievance of protesters who took to streets across the country.
Demonstrators had argued PEC 37, which would have limited the power of federal prosecutors to investigate crimes, might open the way for more corruption.
On Tuesday, the measure was defeated by 430 votes to nine.
Congress also voted to use all the royalties from newly discovered oil fields for education and health.
Earlier, the government modified its plan for political reform in order to speed up the process, officials said.
As a key part of her response to the recent unrest, President Dilma Rousseff proposed on Monday to hold a referendum to establish a constituent assembly to amend the constitution.
Ministers are now suggesting they will focus on a more straightforward referendum proposing political reform, reports BBC Brasil's Gary Duffy in Sao Paulo.
It could address "concrete questions", such as campaign financing and political representation, and be voted on as soon as 7 September.
Education Minister Aloisio Mercadante said the government wanted political reform with "wide public participation".
"We want [the referendum] to happen as soon as possible," he said.
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President Dilma Rousseff: ''Brazil is ready to advance''
A controversial measure to recruit more foreign doctors to address a shortfall in the health system is also going ahead despite the objections of organisations representing Brazilian medical practitioners.
The sudden burst of initiatives is not confined to the government, our correspondent says.
The President of the Senate, Renan Calheiros, has proposed free transport for all students.
Various city authorities have reversed increases in public transport fares that were a source of widespread public anger.
'Pressure from the streets'Our correspondent says the flurry of political activity is taking place ahead of a series of demonstrations in various Brazilian cities on Wednesday.
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One protester in Sao Paulo told Sarah Rainsford: "We will achieve victory"
One of the largest is due to take place in the city of Belo Horizonte where Brazil's football team will play Uruguay in the semi-final of the Confederations Cup.
There is a public holiday in the city, and tens of thousands of protesters are expected. A protest group has promised to start the day demonstrating in front of the national team's hotel.
The cost of the World Cup, for which the Confederations Cup is a dress rehearsal, has been a key issue in recent protests.
Security will be tight with thousands of police on duty and other special forces on standby.
There were violent clashes in Belo Horizonte on Saturday during another protest.
The nature of the demonstration is likely to be seen as an early test of whether the rash of political concessions is having an impact, our correspondent adds.
One national newspaper described the defeat of PEC 37 as a direct result of "pressure from the streets".
PEC 37, which was proposed by a special Congressional committee, would have assigned the power to conduct criminal investigations exclusively to the police, thus removing the role of federal prosecution service from the evaluation of criminal charges.
Critics said the amendment would have affected the ability of prosecutors to conduct effective, fair and impartial criminal investigations, including those into organised crime and corruption.
The wave of rallies in more than 100 cities began in Sao Paulo, where residents were unhappy at planned rises in public-transport fares.
Those increases have since been shelved, but the protests spread across Brazil, and the protesters' demands have become more wide-ranging.
Brazilians have been demanding better health and education, saying they are fed up with paying relatively high taxes and feel that they do not get enough back from the state.
The high cost of staging next year's football World Cup and the 2016 Olympics has also become a recurring grievance.
Protesters are also angry about corruption and frustrated with politicians and political parties.
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