It does decay. An expression whose type is "array of T" decays into a pointer to its first element. For a 2-dimensional array of T, the first element has type array of T. So:
int arr[5];
In most contexts, arr has type "pointer to int". Now apply the same rule to a 2-dimensional array:
int arr2[5][5];
Here, arr2 has type "pointer to array of 5 int". Note that the type of this object is not "array of T", so it does not decay further.