A SECOND DOMESTIC (inside the nation) issue faced by Thomas Jefferson while he was president was:

He faced this challenge by…

The second domestic issue faced by Thomas Jefferson while he was president was the issue of federalism. He faced this challenge by advocating for a limited federal government and a strong state government, believing that the states should have more power than the federal government. He also sought to reduce the size and scope of the federal government, and to limit the power of the judiciary.