Federal Efficiency and Performance Act of 2008 - Requires the President to recommend to Congress, with proposed legislation, which existing federal programs and agencies should be modernized, consolidated, reprioritized, and where necessary, terminated in order to: (1) reduce federal expenditures; (2) increase efficiency and effectiveness of government operations; (3) eliminate overlap and duplication in federal programs and offices; (4) abolish agencies, programs, and activities that no longer serve an important governmental purpose; and (5) identify reductions in amounts of discretionary budget authority or direct spending that can be dedicated to federal deficit reduction.