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Such establishments have been closed since March 21.
"NYC will enter Phase 3 of reopening tomorrow," New York Gov. Andrew Cuomo wrote on Twitter on Sunday. "Indoor dining will remain closed. Wear a mask. Socially distance. Be smart."
Cuomo said Friday that reopening indoor dining would not be part of Phase Three for New York City.
"We are going to postpone phase three indoor dining for New York City until the facts change and it is prudent to open. At this point, it isn't prudent. This is a New York City-only modification because frankly it's a problem that is most pronounced in New York City," Cuomo said during a press briefing.
Meanwhile, New York's Capital Region (near Albany), entered Phase Four of reopening on Friday. That means higher education, professional sports without spectators and low-risk arts and entertainment, both indoors and outdoors, are now allowed.
In neighboring New Jersey, indoor dining is not allowed either. Outdoor dining has been allowed in New Jersey since the state entered Phase Two on June 15.
"The virus outside is a lot less lethal than it is inside," New Jersey Gov. Phil Murphy told "Meet the Press" on Sunday. "We need direct federal cash assistance to states so that we can help those restaurants and small businesses out. The choice is either reopen inside or based on the data we saw ... or we lose people."
"When you combine indoors, lack of ventilation, sedentary, close proximity and by definition you have to take your mask off to eat, those are bad facts," Murphy said.