Child Welfare Provider Inclusion Act of 2017

This bill prohibits the federal government, and any state or local government that receives federal funding for any program that provides child welfare services under part B (Child and Family Services) or part E (Foster Care and Adoption Assistance) of title IV of the Social Security Act (SSAct), from discriminating or taking an adverse action against a child welfare service provider that declines to provide, facilitate, or refer for a child welfare service that conflicts with the provider's sincerely held religious beliefs or moral convictions. The prohibition also applies to Indian tribal organizations or consortia that have an approved foster care and adoption assistance plan or that have an agreement with a state for the administration of funds under part B or part E of the SSAct.

The bill bars such prohibition from applying to SSAct requirements that forbid state entities from denying or delaying adoption or foster care placements on the basis of an adoptive parent's or a child's race, color, or national origin.

The Department of Health and Human Services must withhold 15% of the federal funds that such a state, local, or tribal entity receives for such programs if the state, local, or tribal entity violates this bill.

An aggrieved child welfare service provider may assert such an adverse action violation as a claim or defense in a judicial proceeding and to obtain all appropriate relief (including declaratory relief, injunctive relief, compensatory damages, and reasonable attorney's fees and costs).