Real Education for Healthy Youth Act of 2017 This bill requires the Department of Health and Human Services (HHS), in coordination with the Department of Education, to award grants for: (1) comprehensive sex education for adolescents, (2) comprehensive sex education provided by institutions of higher education, and (3) training faculty and staff to teach comprehensive sex education to adolescents. HHS must enter a contract with a nonprofit organization to evaluate and report on these grants. The bill makes appropriations to carry out the the bill. Grants may not be used for health education programs that: withhold health-promoting or lifesaving information about sexuality-related topics, including HIV; are medically inaccurate or have been scientifically shown to be ineffective; promote gender or racial stereotypes; are insensitive and unresponsive to the needs of certain youth, including survivors of sexual abuse or assault, sexually active youth, pregnant or parenting youth, or individuals with varying gender identities or sexual orientations; or are inconsistent with the ethical imperatives of medicine and public health. The bill amends the Public Health Service Act to revise requirements and eliminate prohibitions regarding the content of educational programs funded through the AIDS prevention program. The bill amends the Elementary and Secondary Education Act of 1965 to allow funding to be used for: (1) materials or programs that promote or encourage sexual activity, and (2) contraceptive distribution in schools. The bill amends title V (Maternal and Child Health Services) of the Social Security Act to repeal the program for abstinence education. Unobligated funds for abstinence education are transferred and made available to carry out this bill.