The State Department claimed it had struck a deal that would save the U.S. government “millions of dollars a year.”

The State Department surprised Panama with the announcement that U.S. government ships would pass through the Panama Canal for free. In a Wednesday X post, the State Department announced that U.S. government vessels could now transit the Panama Canal without paying fees,

Panama has rejected the U.S. State Department's assertion that U.S. ships can pass through the Panama Canal without charge. The claim, which came from U.S. officials, was firmly disputed by Panama’s Foreign Ministry,