Jerusalem Embassy and Recognition Act of 2017 This bill states that it is U.S. policy: (1) to recognize Jerusalem as the undivided capital of Israel, and (2) that the U.S. Embassy in Israel should be established in Jerusalem not later than January 1, 2019. The Jerusalem Embassy Act of 1995 is amended to eliminate the President's authority to waive certain funding limitations for Department of State acquisition and maintenance of buildings abroad until the U.S. Embassy in Jerusalem has officially opened. Any official U.S. document that lists countries and their capital cities must identify Jerusalem as Israel's capital. The bill limits appropriations that may be obligated in FY2017 for State Department acquisition and maintenance of buildings abroad until the U.S. Embassy in Jerusalem has officially opened. Of the funds authorized to be appropriated for FY2017 and FY2018 for State Department acquisition and maintenance of buildings abroad, necessary sums should be made available until expended only for construction and other costs associated with the establishment in Jerusalem of the U.S. Embassy in Israel.