A bill directing the President to hold in an escrow account certain payments to Panama under the Panama Canal Treaty of 1977 during periods in which Panama is not being governed in fact by a government recognized by the United States.

Directs the President to: (1) withhold certain payments to the Republic of Panama under the Panama Canal Treaty of 1977 until he certifies to the Congress that Panama is being governed in fact by a government recognized by the United States; and (2) deposit such payments into an escrow account (which may be paid to Panama after such certification is made). Provides for the management of such account.

Amends the Panama Canal Act of 1979 to make conforming amendments with respect to future payments to Panama.