Entitlement of Military Members Occupying Quarters Formerly Owned by Panama Canal Company to Station Housing Allowances

The question presented for decision was whether the quarters formerly owned by the Panama Canal Company, but transferred to the Republic of Panama under the Panama Canal Treaty of 1977, are still considered Government quarters for purposes of authorizing station housing allowances to members residing in them subsequent to the approval of the Treaty. Under the provisions of the Treaty, the United States retained the use of the housing as needed to accomodate U.S. citizen employees. Joint Travel Regulations (JTR) define Government quarters as including lodgings or other quarters obtained by U.S. Government contract. Since the Treaty constitutes a legal agreement under which the United States obtains such housing as it needs for its employees, the housing is still considered to be Government quarters under the current JTR definition. Therefore, no housing allowance may be paid to the members occupying them under the current regulations. Under the provisions of JTR, a member in Government housing is precluded from receiving a station housing allowance even if he pays a rent greater than a member in comparable private housing who receives the allowance. In such circumstances, GAO would raise no objection to an amendment to the regulations authorizing payment of the station housing allowance, since Congress did not intend such a result.