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RIO DE JANEIRO, BRAZIL - The government is forwarding to the party leaders of the Chamber and Senate, a proposal to transfer up to R$40 billion (US$8 billion) in direct funding for states and municipalities to tackle Covid-19.

In exchange, governors and mayors getting the federal money will be required to suspend salary increases to their civil servants for a period of two years.

The government's proposal is either to replace the emergency bill's text of aid to states and municipalities currently in the Chamber, or to submit a new text through an allied senator. A . . .

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