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"governmental agency" is a correct and usable phrase in written English.
It can be used to refer to a department, division, or other organization within a government or state that provides or administers services or laws. Example: The governmental agency in charge of protecting the environment has proposed new regulations regarding air pollution.
Exact(49)
Responds to governmental agency requirements.
Setting: Governmental agency database of cardiac surgery.
The projects were undertaken by a Swedish civil governmental agency, during the period 2007 2013.
This is a futile attitude for a governmental agency to take.
The city plans to rent several offices to another governmental agency.
In Chile trustees are licensed and supervised by a governmental agency.
Similar(11)
TWIA, a quasi-governmental agency, is partially financed by taxpayers.
"A.P.S. is a quasi-governmental agency, and they're using ratepayer money to influence elections?" Rich said.
At the time, Stone told me, he thought of the M.P.A.A. as a quasi-governmental agency.
The third concerns a para-governmental agency that, fearing Kingsley's loose-cannon candidacy, is plotting to assassinate him.
Price increases have been much more frequent since 1971, when the Postal Service became a quasi-governmental agency.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com