1. Short title This Act may be cited as the State Veterans Home Program Improvement Act of 2017 . 2. Modification of requirements on use by States of State home funds received from the Department of Veterans Affairs (a) In general Subchapter V of chapter 17 of title 38, United States Code, is amended by adding at the end the following new section: 1746. Requirements on use of amounts (a) Use of amounts Amounts paid to a State for the treatment of veterans at a State home under this subchapter may not be used for a purpose other than the operation of a State home in that State. (b) Prohibition on transfer to state treasury A State may not transfer amounts paid to the State under this subchapter to the general treasury of the State. (c) Authorization of transfer of amounts A State may transfer amounts paid to the State under this subchapter to other State homes located in that State. (d) Waiver The Secretary may waive the requirements of subsections (a) and (b) with respect to a State if the State submits to the Secretary a certification that— (1) the State homes located in that State do not require additional maintenance, capital improvements, or staffing; and (2) the amounts paid to the State under this subchapter will be used to benefit veterans. . (b) Clerical amendment The table of sections at the beginning of chapter 17 of such title is amended by inserting after the item relating to section 1745 the following new item: 1746. Requirements on use of amounts. . 3. Modification of priority of State home projects of the Department of Veterans Affairs (a) Projects from previous years (1) In general Paragraph (4) of section 8135(c) of title 38, United States Code, is amended— (A) by striking The Secretary and inserting (A) The Secretary