To amend the Balanced Budget and Emergency Deficit Control Act of 1985 to provide for a sequestration on December 31, 2009, to eliminate the actual budget deficit for fiscal year 2009, and for other purposes.

Amends the Balanced Budget and Emergency Deficit Control Act of 1985 (Gramm-Rudman-Hollings Act) to require a sequestration on December 31, 2009, of an amount equivalent to the actual amount of the deficit (if any) for FY2009, as determined by the Office of Management and Budget (OMB).

Prescribes a general formula for mandatory permanent reduction of each account of the United States, with specified exceptions, under such a sequestration.

Exempts from such a sequestration specified accounts, including: (1) Social Security benefits under title II (Old Age, Survivors, and Disability Insurance) (OASDI) of the Social Security Act (SSA); (2) tier I railroad retirement benefits; (3) Medicare benefits under SSA title XVIII; (4) certain federal retirement and disability benefits; (5) certain federal administrative expenses; (6) certain veterans' life and disability insurance programs and the Post-Vietnam Era Veterans Education Account; and (7) certain automatic spending increases under the National Wool Act and the special milk program.

Prescribes formulae for partial reductions for: (1) foster care and adoption assistance programs under part E of SSA title IV; (2) veterans' medical care; (3) specified federal retirement programs; (4) specified veterans' programs, including pension and education benefits; (5) military health and retirement funds; (6) federal civilian and military pay; and (7) certain Commodity Credit Corporation cash payments.

Requires reductions under any sequestration order in the federal matching rate for state administrative costs under the child support enforcement program of SSA title

Authorizes a state, when a sequestration is in effect, to reduce each weekly benefit payment made under the Federal-State Extended Unemployment Compensation Act of 1970.