Jerusalem Embassy and Recognition Act This bill states that it should be U.S. policy to recognize Jerusalem as the undivided capital of Israel. The bill expresses the sense of Congress that: (1) Jerusalem must remain an undivided city in which the rights of every ethnic and religious group are protected as they have been by Israel, (2) every Israeli citizen should have the right to reside anywhere in Jerusalem, (3) the President and the Department of State should affirm as a matter of U.S. policy that Jerusalem must remain the undivided capital of Israel, (4) the President should implement the provisions of the Jerusalem Embassy Act of 1995 and begin the process of relocating the U.S. Embassy in Israel to Jerusalem, (5) U.S. officials should refrain from actions that contradict U.S. law on this subject, and (6) any official U.S. government document that lists countries and their capital cities should identify Jerusalem as Israel's capital. The Jerusalem Embassy Act of 1995 is amended to eliminate the President's authority to waive certain funding limitations for State Department acquisition and maintenance of buildings abroad until the U.S. Embassy in Jerusalem has officially opened. The bill: (1) prohibits more than 50% of the amounts appropriated to the State Department for FY2017 for embassy security, construction, and maintenance from being obligated until the U.S. Embassy in Jerusalem has officially opened; and (2) restricts the availability and expenditure of amounts authorized for such purpose for FY 2018 and FY2019 to construction and other costs associated with the establishment of the U.S. Embassy in Jerusalem.