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The New York Department of Health and Mental Hygiene (NYCDOH) said on Friday that all NYC residents should be able return to the city by the end of the week.
The state said it would also reopen some schools for some students.
Some people will still be allowed to visit family members who have been out of the country, including the families of those infected.
However, they are only allowed to go to New York for business.
The US government also said on Saturday that anyone who was infected on or after January 5 would not be allowed back in the US.
The number of confirmed cases has reached 1,917, with 8,000 people having died in the pandemic, which began in December.
According to the US Centers for Disease Control and Prevention (CDC), the number of new cases has risen to 6,086.
That is an increase of more than 9,000 per day.
The total number of deaths in the current pandemic has surpassed 2,000.
New York Mayor Bill de Blasio, who took office on Friday, said in a statement that he would make every effort to reopen schools.
The city’s largest union, the International Association of Fire Fighters (IAF), said the new restrictions were “crucial for firefighters who are fighting the virus in NYC”.
The union said it was working with local and state officials to “restore confidence” among firefighters.
New York Governor Andrew Cuomo has also issued an executive order for the state to reopen its schools by the weekend.
It is not yet clear when the rest of the city’s schools will be reopened.