A group small businesses in New York City is suing the city on the grounds that its new indoor vaccine mandate will severely impact their "business, life savings, and livelihood," according to a lawsuit filed in Richmond County Supreme Court Tuesday.

The plaintiffs also took issue with the fact the the mandate does not permit medical or religious exemptions to COVID-19 vaccination.

New York City's first-in-the-nation mandate, which went into effect Tuesday, applies to everyone 12 and older and includes nearly every public indoor activity, from gyms to bowling alleys to movie theaters to concert venues and more, according to the city.

The plaintiffs include Deluca’s Italian Restaurant in Staten Island, Pasticceria Rocco in Brooklyn and Staten Island Judo Jujitsu.

All but two states -- New Hampshire and Vermont -- are reporting high community transmission, according to federal data.

U.S. hospitalizations are now at the highest point in over six months, with more than 91,000 COVID-19 patients currently in hospitals, according to federal data. More than 11,200 patients are being admitted to the hospital each day, the most since January.

Pediatric COVID-19 related admissions per capita have climbed to the highest point of the pandemic and are now nearly six times higher than on July 4.

-ABC News' Arielle Mitropoulos

U.S. Surgeon General Vivek Murthy announced at Wednesday's White House briefing, "Having reviewed the most current data, it is now our clinical judgment that the time to lay out a plan for COVID-19 boosters is now."

Murthy said protection against mild disease has decreased, likely a combination of waning vaccine protection over time and the strength of the delta variant, and that the administration is "concerned" that protection could continue to erode.

"Even though this new data affirms that vaccine protection remains high against the worst outcomes of COVID, we are concerned that this pattern of decline we're seeing will continue in the months ahead, which could lead to reduced protection against severe disease, hospitalization and death," Murthy said.

"That is why, today, we are announcing our plan to stay ahead of this virus by being prepared to offer COVID-19 booster shots to fully vaccinated adults 18 years and older," Murthy said. "They would be eligible for their booster shot eight months after receiving their second dose of the Pfizer or Modern mRNA vaccines."

The boosters are set to begin Sept. 20, but Murthy emphasized that this is pending FDA authorization and also reiterated that does not yet apply to J&J recipients.

-ABC News' Cheyenne Haslet

New York City botched its COVID-19 response, according to an investigation conducted by Scott Stringer, the city's comptroller, who released findings from his inquiry Wednesday.

According to Stringer, key emergency response agencies, including the health department and the NYPD, were intentionally excluded from communications and decision-making "when time was of the essence."

The comptroller also described persistent confusion about the chain of command between agencies and a significantly delayed response to the pandemic.

Officials waited until late February to even begin planning for a worst-case scenario, despite knowing about the impending crisis in January. Stringer called on the mayor, as well as the future mayor, to conduct a thorough review of the city's emergency planning process.

"We cannot erase the mistakes of the past," he said. "But we can make sure we are prepared for future emergencies."

-ABC News' Aaron Katersky