To amend title 32, United States Code, to revise the matching funds requirements for States participating in the National Guard Challenge Program, and for other purposes.

Amends Federal provisions concerning State participation in the National Guard Challenge Program (a civilian youth opportunities program conducted by the Secretary of Defense) to: (1) provide a permanent matching funds level of 75 percent of the costs of operating the State program during a fiscal year; and (2) authorize annual appropriations for the Program.