Criminal Alien Removal Act of 2008

Criminal Alien Removal Act of 2008 - Directs the the Secretary of Homeland Security to carry out a Criminal Alien Program to: (1) identify incarcerated criminal aliens (as defined by this Act); (2) ensure that such aliens are not released into the community; and (3) remove such aliens from the United States upon release.

Makes a state that does not cooperate with the Secretary of Homeland Security to carry out the Program ineligible for Department of Justice law enforcement grant programs (including the criminal alien incarceration program under the Immigration and Nationality Act).

Authorizes appropriate state officials to: (1) hold an illegal alien for up to 14 days after completion of the term of incarceration in order to effectuate transfer to federal custody if the alien is removable or not lawfully present in the United States; and (2) issue a detainer permitting an alien who completes a term of incarceration to be held until U.S. Immigration and Customs Enforcement takes the alien into custody.

Directs the Secretary to carry out the Program as follows: (1) by December 31, 2010, identify each criminal alien incarcerated in a federal facility who will be deportable or removable upon release; and (2) by December 31, 2012, identify each criminal alien serving a term of three or more years in a state or local facility who will be deportable or removable upon release.