1. Short title This Act may be cited as the Veteran State Home Grant Backlog Reduction Act of 2017 . 2. Modification of treatment of applications for projects to construct new State homes (a) Findings Congress makes the following findings: (1) The State home construction grants priority list group 1 of the Department of Veterans Affairs for fiscal year 2017 contains 57 projects with a cumulative cost of $639,805,081. (2) Of those projects, 17 are new construction projects, with a cumulative cost of $445,430,897. (3) The Secretary of Veterans Affairs has requested between $80,000,000 and $90,000,000 for construction grants for State homes in each annual budget submission to Congress for fiscal years 2013 through 2018. (4) Recurring funding shortfalls have created a backlog of outstanding State home projects, averaging six years from receipt of State funds to obligation of Federal funds for new construction projects. (b) Modification of priority of projects (1) In general Paragraph (3) of section 8135(c) of title 38, United States Code, is amended— (A) by redesignating subparagraphs (A) and (B) as clauses (i) and (ii), respectively; (B) by striking In according and inserting (A) In according ; and (C) by adding at the end the following new subparagraph: (B) In according priorities to projects under paragraph (2) of this subsection, the Secretary shall— (i) prioritize grants for safety, renovation, and bed replacement using the criteria described in subparagraphs (A), (B), (C), (E), and (G) of such paragraph