The Mayor of Washington DC, Muriel Bowser, has been forced to back down over caps on in-person service attendance after the Catholic Church filed suit.
The Archdiocese of Washington DC took legal action after the limit was set at 50 people regardless of the size of the congregation or building.
Mayor Bowser has now increased the limit to 250 - or 25% of the building's maximum capacity, whichever one is lower, The Washington Times reports.
It follows similar successful action brought by Brooklyn Diocese and Orthodox Jewish synagogues after New York State's Covid-19 restrictions on places of worship.
The Archdiocese of Washington DC said the new order would make it possible to welcome more of the faithful to church over Christmas.
"We are continuing to evaluate the impact of these new rules, and it may still be necessary for the court to weigh in on the proper balance between public safety and the fundamental right to worship," it said in a statement.
"As always, we welcome continued dialogue with the Mayor's Office to ensure that current and future restrictions are fairly applied and do not unduly burden the free exercise of religion."
Despite the climbdown, Bowser is calling on Christians to avoid in-person services this Christmas and celebrate the season online instead.
"[T]his year is not the year to pack churches full of people," she told reporters.
"We are asking people — to the best extent they can — to celebrate virtually."
