Welfare Improvement Act of 1997

Welfare Improvement Act of 1997 - Amends part A (Temporary Assistance for Needy Families) (TANF) of title IV of the Social Security Act (SSA) in order to make various specified changes to the Personal Responsibility and Work Opportunity Reconciliation Act of 1996.

Prohibits States from providing cash TANF benefits for a minor child born to a TANF recipient family with other children or to a person with other children who received TANF assistance during the ten-month period ending with the birth of the child, with certain exceptions for rape or incest, unless the State elects to opt out of the application of such prohibition. Exempts from such prohibition a minor child born into a family with no other children.

Requires termination of TANF assistance after the TANF recipient's third refusal to engage in required work activities.

Increases from 50 percent to 75 percent the minimum work participation rate required under TANF for FY 2002 and thereafter.

Prohibits Federal TANF funds to States which do not establish random drug testing programs under which the TANF assistance for individual family recipients who test positive for controlled substance use is terminated.

Amends SSA title XVI (Supplemental Security Income) to expressly provide that nothing in it shall be construed to authorize recruitment activities under such title, including with respect to any outreach programs or demonstration projects.