Title 22Foreign Relations and IntercourseRelease 119-73not60

§3657a Quarters Allowances

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

Last updated Apr 5, 2026|Official source

Summary

The Department of Defense can give a housing (quarters) allowance to certain U.S. citizen employees who work in the area that, before October 1, 1979, was called the Canal Zone. "Position" means a civilian job. "Employee" means a person in a DoD job whose permanent duty station is in that area. The allowance may be given to U.S. citizens who worked there before October 1, 1979 for the Panama Canal Company, the Canal Zone Government, or another agency, and to other U.S. citizen employees who were recruited inside the United States (before, on, or after this law took effect). How much someone gets follows rules set under presidential regulations, but the payment cannot be more than the difference between two amounts: (1) the smaller of either the actual rent and utilities the employee paid while living in non‑Government housing or the maximum that the Department of State’s Standardized Regulations (Government Civilians, Foreign Areas) would allow, and (2) the estimated rent and utilities the employee would have paid if Government housing had been provided and rented. This rule applies whether or not the Department of Defense has made the choice described in section 3652(b).

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 5, 2026

Release point: 119-73not60