Cultural Education Enhancement Act of 1997

Cultural Education Enhancement Act of 1997 - Amends the National Foundation on the Arts and the Humanities Act of 1965 (NFAHA) to repeal, replace, and rename it the American Heritage Administration Act of 1997.

Establishes in the executive branch the American Heritage Administration (AHA). Eliminates the following entities under the current NFAHA: the National Foundation on the Arts and Humanities, the National Endowment for the Arts (NEA), the National Endowment for the Humanities (NEH), the National Council on the Arts, the National Council on the Humanities, the National Capital arts and cultural affairs grants programs, and the Federal Council on the Arts and the Humanities. Provides for appointment of an AHA Director by the President, with Senate advice and consent.

Requires the AHA Director to establish and implement programs of: (1) direct grants (using recommendations of peer review advisory councils) to nonprofit groups for projects, productions, and workshops in the fields of arts education and humanities education; and (2) grants to eligible applicant States for use on projects and productions approved by State agencies for specified uses relating to the arts, humanities, and cultural heritage.

Specifies additional conditions to: (1) financial assistance to support the arts; (2) all financial assistance under this Act; and (3) division and allotment of appropriated funds. Provides for compliance, enforcement, and evaluation activities.

Authorizes appropriations.

Sets forth conforming amendments to various Federal laws. Transfers all NEA and NEH property to AHA. Requires the Director of the Office of Management and Budget to transfer the affairs of NEA and NEH, as well as those of the National Council on the Arts, the National Council on the Humanities, and the Federal Council on the Arts and the Humanities, to AHA.