Preserving State Commission Oversight Act of 2017 or the PSC Oversight Act of 2017 This bill nullifies a Federal Communications Commission regulation that prohibits a state commission from designating Lifeline broadband providers that are eligible to accept government subsidies in exchange for providing discounted Internet service to qualifying low-income consumers under the universal service program. The bill also amends the Communications Act of 1934 to prohibit anything in such Act or the Telecommunications Act of 1996 from being construed as modifying or limiting the jurisdiction of any state commission to designate a telecommunications carrier eligible to receive universal service support.