Public Broadcasting Funding Act of 1986

Public Broadcasting Funding Act of 1986 - Amends the Communications Act of 1934 to authorize any public broadcasting station which elects not to broadcast programs that have previously been broadcast by a commercial U.S. station to broadcast limited advertising. Restricts the scheduling and duration of such advertisements. Bars political, religious, and editorial advertisements. Terminates such authority after four years.

Requires the National Telecommunications and Information Administration to analyze the results of advertising on public broadcast stations and to report to the Congress on: (1) the influence of the advertising on programming; (2) audience reaction; (3) business purchases of advertising; (4) the effectiveness of such advertising in providing funding; (5) negative economic impacts on commercial station advertising; and (6) recommendations concerning the permanent authorization of such advertising. Requires the comments of commercial broadcast station licensees to be taken into account in preparing such recommendations.