GPS, the Global Positioning System run by the United States Military, is free for civilian use, though the reality is that we're paying for it with tax dollars.

However, GPS on cell phones is a bit more murky. In general, it won't cost you anything to turn on the GPS in your cell phone, but when you get a location it usually involves the cell phone company in order to get it quickly with little signal, as well as get a location when the satellites aren't visible (since the gov't requires a fix even if the satellites aren't visible for emergency 911 purposes). It uses up some cellular bandwidth. This also means that for phones without a regular GPS receiver, you cannot use the GPS at all if you don't have cell phone service.

For this reason most cell phone companies have the GPS in the phone turned off except for emergency calls and for services they sell you (such as directions).