New Orleans authorities on Wednesday announced 15 deaths and several injuries after "a mass casualty incident involving a vehicle that drove into a large crowd on Canal and Bourbon Street."
"Get yourself away from the area," the city's public alert system announced early on January 1, with revelers still on the streets.
According to an FBI statement, the suspect was identified as a 42-year-old US army veteran, with a flag of Islamist group Islamic State (IS) having been recovered from his car.
The suspect was also carrying a potential improvised explosive device (IED). The FBI is investigating the incident as an act of terrorism.
The suspected perpetrator was killed during a shootout with police.
The FBI also said it doesn't believe the New Orleans attacker was "solely responsible" for the attack, indicating his accomplices may still be at large. They asked for the public's help in tracking down other suspects.
Police Superintendent Anne Kirkpatrick described the suspect as a "terrorist," while the FBI said "an ISIS flag was located in the vehicle," using another name for the Islamic State jihadist group, and saying it was looking into his links with such organizations.
Biden says US 'will not tolerate' attacks
US President Joe Biden called the New Orleans mayor to offer "full federal support" after the attack, which the White House called "horrific."
At a press conference at Camp David, Biden offered his condolences to the victims and their families, saying: "To all the families of those who were killed, to all those who were injured, to all the people in New Orleans who are grieving, I want you to know I grieve with you."
He added that the suspect had posted videos on social media shortly before the attack indicating that he had been inspired by extremist organization IS and expressed a "desire to kill."
With law enforcement continuing to search for possible co-conspirators, Biden said officials were probing whether the explosion of a Tesla Cybertruck in Las Vegas also on Wednesday evening was linked.