A bill to increase the investment of the United States in the Panama Canal by certain amounts in the Panama Canal Commission Fund, and to use that amount of tolls and other receipts that covers interest on that increased investment for a Scholarship for Democracy Program.

Amends the Panama Canal Act of 1979 to increase the investment of the United States by the amount of tolls and other receipts that covers interest on the investment of the United States and that was deposited in the Panama Canal Commission Fund before December 23, 1985.

Establishes the "Scholarship for Democracy Program." Authorizes the Panama Canal Commission to provide scholarships under such program for undergraduate study at U.S. institutions of higher education by nationals of the Republic of Panama who have completed their secondary education.

Sets forth guidelines for the administration of such program. Establishes a Scholarship Appointment Board. Specifies the membership of such Board. Authorizes the Board to choose the recipients of such scholarships.

Requires that the part of tolls and other receipts of the Panama Canal Commission that covers interest on the increase in the investment of the United States in the Panama Canal provided for in this Act shall be deposited in a separate account in the Treasury. Makes available the amounts in such separate account for use by the scholarship program established by this Act.