As of 5 p.m. Sunday, the hurricane carried 75 mph winds.
Hurricane Bill started the weekend as a Category 3 storm, but was downgraded Saturday morning to a Category 2, and further downgraded that afternoon to a Category 1.
Still, it brought risky conditions to the shore.
Rip tides and high waves prompted officials to close several beaches Saturday in New Jersey and New York, and all of the beaches on Nantucket were closed. Where beaches remained open Saturday, people were being cautioned to stay out of the water.
Bill Karatz, head lifeguard in Belmar, N.J., said conditions were "very treacherous."
"We're just letting [beachgoers] just get their feet wet," he said. "And [conditions are] gonna get worse."
Hurricane Bill lashed Bermuda Friday night with high winds and caused some heavy damage.
But the island avoided a direct hit, and Bermuda's hurricane watch and subsequent tropical storm warnings were discontinued Saturday.
After earning its name Aug. 15 when it became a tropical storm, Hurricane Bill became the first hurricane of the Atlantic storm season by last Monday morning. The hurricane strengthened to a Category 4 hurricane by Wednesday, with sustained winds up to 135 miles per hour. It then lost strength throughout the week.
ABC News' Erin K. Donovan, Stephanie Sy, Marysol Castro, Jeffrey Kofman, Gerard McNiff, Jan Simmonds, Sharyn Alfonsi and The Associated Press contributed to this report.