Global coronavirus cases have surged to their highest level of the pandemic, with nearly a million-and-a-half confirmed cases a day, driven largely by the fast-spreading Omicron variant. Here in the U.S., where hospitalizations are rising rapidly and more than 400,000 people are testing positive daily, many cities held muted New Year’s Eve celebrations. In New York City, some 15,000 people still gathered in Times Square to witness the iconic ball drop. New York state reported a record of over 85,000 new cases on New Year’s Eve. Health experts warn that even though a lower percentage of people infected with Omicron end up hospitalized, the sheer number of cases is pushing the healthcare system past its breaking point. This is top U.S. infectious disease expert Dr. Anthony Fauci.

Dr. Anthony Fauci: “Even if you have a less of a percentage of severity, when you have multi-, multi-, multifold more people getting infected, the net amount is you’re still going to get a lot of people that are going to be needing hospitalization. And that’s the reason why we’re concerned about stressing and straining the hospital system.”

Hospitalizations among children hit new records, with COVID-related admissions increasing by 66% in the last week of December, though the number of fatalities remains comparatively low. This comes as millions of students across the U.S. return to school today. Education Secretary Miguel Cardona said Sunday in-person learning is a priority but that “bumps in the road” were expected amid the current surge.

In related news, economists are warning that mounting infections and the loss of the increased pandemic-related child tax credit could lead to serious financial hardship for millions of families.

Travel disruptions continued into the new year, with over 2,600 flights canceled on January 1 in the U.S. alone due to a combination of severe winter weather and sick staff.

Defense Secretary Lloyd Austin is the latest high-profile government official to test positive for COVID. He is fully vaccinated and boosted and has reported “mild” symptoms.