To amend title 32, United States Code, to increase the maximum Federal share of the costs of State programs under the National Guard Youth Challenge Program.

Amends Federal provisions concerning the National Guard Youth Challenge Program (a civilian youth opportunities program conducted by the Secretary of Defense) to provide a maximum Federal matching funds level of 60 percent of the costs of operating the State program during FY 2005, 65 percent during FY 2006, 70 percent during FY 2007, and 75 percent during FY 2008 and beyond.