New Jersey Gov. Phil Murphy and New York Gov. Andrew Cuomo made the announcement Wednesday.
Starting March 19, restaurants in New Jersey and NYC can expand their indoor dining.
The capacity for indoor dining in both areas is currently 35%.
Cuomo previously announced that starting March 19, restaurants outside of NYC can increase to 75% capacity.
"In New York State, our decisions are based on science and data and we are encouraged by the continued decline in infection and hospitalization rates," Governor Cuomo said. "In partnership with the State of New Jersey, we have adjusted with rigorous testing and limited capacity indoor dining openings in New York City to expand to 50 percent. We will continue to follow the science and react accordingly. If we keep the infections down and vaccinations up, we will continue to stay ahead in the footrace against this invisible enemy and reach the light at the end of the tunnel together."