Title 22Foreign Relations and IntercourseRelease 119-73

§3754 Congressional restraints on property transfers and tax expenditures; formal apprisal of Panama

Title 22 › Chapter CHAPTER 51— - PANAMA CANAL › Subchapter SUBCHAPTER I— - ADMINISTRATION AND REGULATIONS › Part Part 3— - Funds and Accounts › Subpart subpart v— - accounts with republic of panama › § 3754

Last updated Apr 6, 2026|Official source

Summary

Congress uses its power under Article IV, section 3, clause 2 to control and dispose of U.S. property. Before any U.S. property in the Republic of Panama is transferred under section 3784, the President must formally tell the Government of Panama five things. First, no payments will be made to Panama from U.S. tax money. Second, the United States will decide if and how U.S. tax funds are used to carry out U.S. rights or duties under the Panama Canal Treaty of 1977 and related agreements. Third, after October 1, 1979, U.S. tax money cannot be used for treaty implementation unless Congress specifically authorizes and funds it. Fourth, the Commission cannot spend more than what is in the Panama Canal Revolving Fund. Fifth, these limits do not apply to moving the remains of the United States’ honored dead from Mount Hope Cemetery in the former Canal Zone to a proper, dignified resting place under Reservation 3 of the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.

Full Legal Text

Title 22, §3754

Foreign Relations and Intercourse — Source: USLM XML via OLRC

(a)The Congress enacts this section in the exercise of its authority under Article IV, section 3, clause 2 of the Constitution of the United States to dispose of and make necessary rules and regulations with respect to property of the United States.
(b)Prior to the transfer of property of the United States located in the Republic of Panama to the Republic of Panama pursuant to section 3784 of this title the President shall formally advise the Government of Panama that—
(1)in fulfilling its obligations under the Panama Canal Treaty of 1977, the United States shall make no payments to the Republic of Panama derived from tax revenues of the United States;
(2)the United States retains full discretion and authority to determine whether and the extent to which tax revenues of the United States may be expended in exercising United States rights and carrying out United States responsibilities under the Panama Canal Treaty of 1977 and related agreements;
(3)no tax revenues of the United States shall be made available for obligations and expenditure after October 1, 1979, for purposes of implementing the Panama Canal Treaty of 1977 and related agreements, unless hereafter specifically approved by the Congress through the authorization and appropriation process;
(4)the total amount expended by the Commission from funds available for the use of the Commission shall not exceed the total amount deposited in the Panama Canal Revolving Fund; and
(5)the foregoing paragraphs of this subsection do not apply to expenditures made by the United States in fulfilling United States obligations to transfer the remains of our honored dead from Mount Hope Cemetery in the former Canal Zone to an appropriate and dignified resting place in accordance with Reservation 3 to the Treaty Concerning the Permanent Neutrality and Operation of the Panama Canal.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

Amendments

1987—Subsec. (b)(4). Pub. L. 100–203 substituted “available” for “appropriated to or” and “Panama Canal Revolving Fund” for “Panama Canal Commission Fund”.

Statutory Notes and Related Subsidiaries

Effective Date

of 1987 AmendmentAmendment by Pub. L. 100–203 effective Jan. 1, 1988, see section 5429 of Pub. L. 100–203, set out as a note under section 3712 of this title.

Executive Documents

Delegation of Functions Functions vested in President by subsec. (b) delegated to Secretary of State, see section 1–402 of Ex. Ord. No. 12215, May 27, 1980, 45 F.R. 36044, set out as a note under section 3601 of this title.

Reference

Citations & Metadata

Citation

22 U.S.C. § 3754

Title 22Foreign Relations and Intercourse

Last Updated

Apr 6, 2026

Release point: 119-73