Navajo-Hopi Land Exchange Act of 1986

Navajo-Hopi Land Exchange Act of 1986 - Title I: Prohibits the relocation of the Navajo or Hopi Indian Tribes and the development of, or construction upon, Navajo new lands in Arizona until a final settlement of the land dispute between the two tribes.

Title II: Arbitration - Allows the Hopi Tribe, within 30 days after the enactment of this Act, to elect to arbitrate the land dispute. Sets forth specified provisions, with respect to such arbitration, relating to: (1) notice of intent to arbitrate; (2) selection of arbitrators; (3) arbitration procedures; (4) the arbitrator's decision; and (5) a negotiated settlement.

Title III: Requires the transfer (provided the Hopi Tribe does not elect arbitration) of all beneficial interest of the Hopi Tribe in the surface estate of specified lands in Arizona held in trust by the United States to the Navajo Tribe, such land to be held in trust by the United States and made a part of the Navajo Reservation. Requires a similar transfer of specified Navajo lands to the Hopi Tribe.

Provides for the payment of certain royalties by the Navajo Tribe to the Hopi Tribe in exchange for the extinguishment of specified claims that the Hopi Tribe may hold against the Navajo Tribe. Authorizes appropriations for such payments.

Repeals specified provisions of the Navajo and Hopi Indian Relocation Amendments of 1980.

Establishes the Navajo Rehabilitation Fund. Requires income from such Fund to be used to continue the rehabilitation and improvement of the economic, educational, and social condition of Navajo families adversely affected by the relocation program under the Amendments of 1980.

Provides for relocation benefits for eligible Navajo and Hopi Indian families who have relocated under the Amendments of 1980.

Requires the Navajo and Hopi Indian Relocation Commission to wind up its affairs and cease to exist within 180 days.

Repeals specified provisions of the Amendments of 1980.