Which government agency primarily deals with domestic policy issues?

You can call them domestic policy council or the Congress.

Explanation:

Domestic policy covers a wide range of areas, including business, education, energy, healthcare, law enforcement, money and taxes, natural resources, social welfare, and personal rights and freedoms.

"Domestic Policy Council," as it is known today, was created by Executive Order in 1993. Under President Bush, the Domestic Policy Council oversees major domestic policy areas such as education, health, housing, welfare, justice, federalism, transportation, environment, labor and veteran's affairs

after defeating german forces in north africa allied leaders turned their attention to "italy," since this was the location that made the most geographic sense before invading northern europe via france. 

a system of cooperative federalism emerged, as the powers of the federal government expanded.