Local Officials Transportation Empowerment Act of 1997

Local Officials Transportation Empowerment Act of 1997 - Amends Federal highway provisions to require each State, in cooperation with local officials in areas of less than 50,000 population (excluding projects undertaken on the National Highway System (NHS) and pursuant to the Interstate maintenance program), to establish selection procedures for projects undertaken in such areas.

Requires: (1) the State, on or before September 30, 1998, to submit such procedures to the Secretary of Transportation for approval; (2) local officials in such areas to be permitted to participate equally with the State in project selection; (3) the State, in cooperation with such local officials, to review the procedures established on a biennial basis, make such modifications as necessary, and resubmit the procedures as modified to the Secretary for approval; (4) the Secretary to approve or disapprove the procedures in accordance with specified requirements; and (5) the Secretary or the Secretary's designee, upon request of such local officials, to serve as an arbitrator to resolve any disputes that may arise in establishing or modifying the procedures.

Amends Federal highway provisions to require that: (1) the State obligate specified surface transportation program funds earmarked for areas of less than 5,000 population for eligible projects not on the NHS; and (2) not less than 30 percent of certain amounts apportioned to each State under the highway bridge replacement and rehabilitation program for FY 1998 and each fiscal year thereafter be expended for specified projects on public roads other than those on a Federal-aid system.