Title 22Foreign Relations and IntercourseRelease 119-73

§3657a Quarters allowances

Title 22 › Chapter CHAPTER 51— - PANAMA CANAL › Subchapter SUBCHAPTER I— - ADMINISTRATION AND REGULATIONS › Part Part 2— - Employees › Subpart subpart ii— - wage and employment practices › § 3657a

Last updated Apr 6, 2026|Official source

Summary

Allows the Department of Defense to give a housing (quarters) payment to certain U.S. citizen civilian employees whose permanent duty station is in the area that, before October 1, 1979, was called the Canal Zone. Position means a civilian job. Employee means someone in the Defense Department with that permanent duty station. It covers two groups: U.S. citizens who, before October 1, 1979, worked for the Panama Canal Company, the Canal Zone Government, or another agency in the Canal Zone; and other U.S. citizens who were recruited in the United States at any time. The payment amount is set by rules made under the President’s authority. For any period, the allowance cannot be more than the smaller of (a) the actual rent and utility costs the employee paid while living off government housing or the maximum allowed by the Department of State Standardized Regulations (Government Civilians, Foreign Areas), and (b) the estimated rent and utilities the employee would have been charged if government-owned or leased housing had been provided on a rental basis. This rule applies even if the Department of Defense has made a related election under another law.

Full Legal Text

Title 22, §3657a

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)Notwithstanding paragraphs (2) and (3) of section 3651 of this title, as used in this section—
(1)“position” means a civilian position; and
(2)“employee” means an individual serving in a position in the Department of Defense whose permanent duty station is in the area which, before October 1, 1979, was known as the Canal Zone.
(b)Under regulations prescribed by or under authority of the President, the Department of Defense may grant a quarters allowance in the case of—
(1)any employee who is a citizen of the United States and who, before October 1, 1979, was employed by the Panama Canal Company, the Canal Zone Government, or any other agency, in the area then known as the Canal Zone; and
(2)any other employee who is a citizen of the United States and who (before, on, or after the effective date of this section) is or was recruited within the United States;
(c)The amount of any quarters allowance granted to an employee under this section shall be determined in accordance with the regulations prescribed under subsection (b) of this section, except that such allowance for any period may not exceed the amount, if any, by which—
(1)the lesser of—
(A)the actual expenses for rent and utilities incurred by the employee during such period while occupying quarters other than Government owned or leased quarters; or
(B)the maximum amount which would be authorized for such employee with respect to such period under the Department of State Standardized Regulations (Government Civilians, Foreign Areas) if such employee were covered by those regulations;
(2)the estimated total cost of rent and utilities which the employee would have been charged if Government owned or leased quarters had been provided on a rental basis during such period.
(d)The provisions of this section shall apply without regard to whether any election by the Department of Defense under section 3652(b) of this title is then in effect.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

For

Effective Date

of this section, referred to in subsec. (b)(2), see section 2 of Pub. L. 98–600, set out below.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 98–600, § 2, Oct. 30, 1984, 98 Stat. 3146, provided that: “The

Amendments

made by this Act [enacting this section] shall take effect on October 1, 1984, and shall apply with respect to utility costs incurred, and rent payable for any period beginning, on or after that date.”

Executive Documents

Ex. Ord. No. 12520. Quarters Allowance to Department of Defense Employees in Panama Ex. Ord. No. 12520, June 19, 1985, 50 F.R. 25683, provided: By the authority vested in me as President by the Constitution and the laws of the United States of America, including section 1217a of the Panama Canal Act of 1979 (22 U.S.C. 3657a), it is hereby ordered as follows: section 1. The Secretary of Defense is authorized to prescribe the

Regulations

referred to in section 1217a of the Panama Canal Act of 1979 [22 U.S.C. 3657a], relating to quarters allowances. Sec. 2. The

Regulations

prescribed under section 1 shall be consistent with Article VII(4) of the Agreement in Implementation of Article IV of the Panama Canal Treaty and with all other relevant provisions of the Panama Canal Treaty and related agreements. Ronald Reagan.

Reference

Citations & Metadata

Citation

22 U.S.C. § 3657a

Title 22Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73