Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1986

Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1986 - Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman- Hollings Act) to revise sequestration procedures.

Directs the Comptroller General to submit the General Accounting Office's (GAO) initial and revised sequestration reports for a fiscal year to the Director of the Office of Management and Budget (OMB). (Current law requires such reports to be submitted to the President.) Requires the Director to issue to the President and the Congress: (1) by September 1 preceding the fiscal year, an initial sequestration report based on the initial GAO report, providing the same items of information and explaining any differences in such reports; and (2) by October 15, a revised version as necessary in light of the revised GAO report. Requires the President to issue any necessary initial sequestration order on September 3 (currently, September 1) and the final order on October 17 (currently, October 15). Requires the President's initial and final orders to be in accordance with the initial and revised OMB (currently, GAO) reports.

Terminates procedures providing for sequestration from national defense accounts through the termination or modification of existing contracts.