Irene, downgraded from a hurricane to a tropical storm, swept through the Northeast today, leaving at least 18 dead in its wake, millions without power and an estimated $7 billion to $13 billion in damages.
"We're not out of the woods yet. Irene remains a large and potentially dangerous storm," U.S. Homeland Security Secretary Janet Napolitano said.
After roaring through coastal North Carolina on Saturday, Irene raked the coasts of Virginia, Maryland, Delaware and New Jersey before hitting New York this morning as a tropical storm with 65 mph winds. By 10 a.m. today, patches of blue sky and sunshine began peeking through in lower Manhattan.
With its heavy rainfall and powerful winds, the storm created flood conditions up and down the East Coast. But Irene appeared to have caused less damage than anticipated in the New York area, and forecasts indicate the tropical storm will weaken in New England and become a post-tropical cyclone tonight or early Monday.
Philadelphia experienced significant local flooding in several areas, but subways, elevated trains and bus service in the city were beginning to return to activity on Sunday.
More than 4.5 million East Coast homes and businesses are without power and thousands of people have been evacuated from their homes, according to The Associated Press.
In New York City, approximately 9,600 of the 370,000 residents ordered to evacuate their homes spent the stormy night in shelters, as most people found friends or family with whom to stay.
Emmanuel Dunand/AFP/Getty Images
Close to 2 million people lost power in the New York City area. The National Grid reported that 19,000-plus homes in Rhode Island lost power, and 6,000-plus homes are already without power in Massachusetts.
For more on how Hurricane Irene is impacting New York and the surrounding tri-state area, go to ABC News affiliate WABC-TV.
In lower Manhattan at Wall Street and South Street, water from New York's East River breached the seawall this morning, but has since receded.
Irene made landfall along the coast of New Jersey near Little Egg Inlet, just north of Atlantic City, around 5:35 a.m. The estimated intensity of at landfall was 75 mph.
It was the second time Irene made landfall since slamming into North Carolina Saturday.
The hurricane was moving through southern New England this afternoon.
While Irene's strength has declined and evacuated residents are returning home, government officials warned the public that the storm still poses safety dangers.
"We encourage you to stay off the roads so much as possible," Napolitano said at Federal Emergency Management Agency (FEMA) news conference.
"We still have a ways to go with Irene," she said.
Some areas are still prone to tidal flooding and heavy rains will be the ongoing issue as the storm passes through New England today to eastern Canada overnight, FEMA officials said.
Officials said it will take time to assess total damage costs but Peter Morici, a professor at University of Maryland, said the cost of Irene could surpass that of Hurricane Katrina.
"Revised estimates of the direct damage caused by Hurricane Irene are in the range of $20 billion. Add to those the loss of about two days economic activity, spread over a week, across 25 percent of the economy, and an estimate of the losses imposed by Irene is about $40 billion to 45 billion," Morici said.
Loss of Life
At least 18 people have reportedly died as a result of Irene's assault on the East Coast, including victims of car accidents and falling tree limbs. The storm victims include two children: an 11-year-old boy in Virginia, and a 15-year-old girl in North Carolina.
Click Here for Hurricane Irene Storm Tracker
The Associate Press contributed to this report.
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