Payoffs-for-Layoffs Corporate Welfare Elimination Act of 1997

Payoffs-for-Layoffs Corporate Welfare Elimination Act of 1997 - Prohibits any funds appropriated or otherwise made available to the Department of Defense (DOD) from being obligated or expended for payment of any restructuring cost associated with a merger or acquisition incurred by a DOD contractor.

Provides for the handling of contractor claims for such costs with respect to a merger or acquisition occurring before the enactment of this Act.

Amends the National Defense Authorization Act for Fiscal Year 1995 to: (1) repeal a provision made inconsistent by this Act; (2) extend through FY 2000 a requirement of a report from the Secretary of Defense to the Congress concerning DOD savings achieved under a corporate restructuring; (3) require in such report certain additional information concerning DOD's past experience with contractors for which DOD agreed to allow such costs; and (4) require a current report from the Comptroller General to the Congress to include an estimate and description of the net effect on the Federal budget of reimbursing defense contractors for such costs.