We recently presented a new method for developing generalized gradient approximation (GGA) exchange-correlation energy functionals, using a least-squares procedure involving numerical exchange-correlation potentials and experimental energetics and nuclear gradients. In this paper we use the same method to develop a new GGA functional, denoted HCTH, based on an expansion recently suggested by Becke [J. Chem. Phys. 107, 8554 (1997)]. For our extensive training set, the new functional yields improved energetics compared to both the BLYP and B3LYP functionals [Phys. Rev. A 38, 3098 (1988); Phys. Rev. B 37, 785 (1988); J. Chem. Phys. 98, 5648 (1993); J. Phys. Chem. 98, 11623 (1994)]. The geometries of these systems, together with those of a set of transition metal compounds, are shown to be an improvement over the BLYP functional, while the reaction barriers for six hydrogen abstraction reactions are comparable to those of B3LYP. These improvements are achieved without introducing any fraction of exact orbital exchange into the new functional. We have also re-optimized the functional of Becke-which does involve exact exchange-for use in self-consistent calculations.