Amends Federal provisions concerning the National Guard Challenge Program (a civilian youth opportunities program conducted by the Secretary of Defense) to: (1) rename it the National Guard Youth Challenge Program; (2) provide a maximum Federal matching funds level of 60 percent of the costs of operating the State program during FY 2004, 65 percent during FY 2005, 70 percent for FY 2006, and 75 percent for FY 2007 and beyond; and (3) authorize appropriations for the Program for FY 2005.