Intergovernmental Mandate Relief Act of 1986

Intergovernmental Mandate Relief Act of 1986 - Title I: General Provisions - Declares that it is the purpose of this Act to establish procedures to assure that the Federal Government pays the total amount of additional direct costs incurred by State and local governments in complying with any intergovernmental regulation which takes effect on or after the date of enactment of this Act and after the termination of the General Revenue Sharing Program.

Title II: Compensation of State and Local Governments for Additional Direct Costs - Prohibits a Federal agency or court from requiring compliance in any fiscal year by State or local governments with any intergovernmental regulation unless provisions of law have been enacted which compensate such governments for additional direct costs incurred by such compliance. Declares that the compensation requirement may be waived by the enactment of a joint resolution of the Congress.

Requires the Director of the Congressional Budget Office to estimate such additional direct costs and include such estimates in annual reports to the President and the Congress.

Requires congressional committees to propose amendments to significant laws for which regulations will be promulgated containing provisions to compensate State and local governments for additional direct costs of compliance.

Establishes procedures for Federal agencies to reimburse State governments for additional direct costs and for State governments to reimburse local governments for such costs.

Title III: Miscellaneous - Amends the Congressional Budget Act of 1974 to require the Congressional Budget Office to prepare cost estimates for bills or resolutions which are likely to cost State and local governments $100,000,000 (currently, $200,000,000) or more annually.