Foreign policy and especially military interventions tend to gain more media coverage largely because they translate so well to the screen. However, domestic policy is much more important in terms of both expenditures and sheer numbers of programs and departments involved. Domestic policy at the national level affects almost every aspect of the lives of American citizens.

The phrase "domestic policy" refers to programs and laws designed to impact the lives of people within the boundaries of the United States. Domestic policies impact civil rights, social welfare programs, health care, education, resource management, and energy use. Domestic policy also affects very controversial issues, such as gun control, immigration restrictions, gay rights, abortion, and homeland security.

Much of domestic policy falls under two major categories: regulatory policy and distributive policy. Regulatory policy—as the name implies—is created to restrict or prohibit actions that pose a danger to the American public. Laws created to enact domestic policy generally restrict people, groups, and companies from having a negative impact on individuals or on society as a whole. Regulatory policies take many forms: drug laws, voting procedures, safety guidelines, and regulations on businesses that prohibit, for example, the dumping of toxic waste.

Distributive policy is focused on the federal government's efforts to provide goods and services to various organizations and individuals. These benefits are designed to promote the general welfare by creating shared infrastructure and by assisting citizens who lack the means to live healthy, comfortable lives without some outside help. Distributive policies include federal funding for public education, public safety, and federal highways. Distributive policy also includes the provision of entitlement payments, such as social security and Medicare.