The reckless trend sees young participants invite those known to be infected to a party, and taking bets on which guest will catch the potentially deadly disease first.
Whoever tests positive for Covid-19 first wins a pool of cash, according to local reports.
The parties are being held as the United States’ number of confirmed cases hit a terrifying 2.74 million, with a death toll of 130,000.
A fire chief in Tuscaloosa, western Alabama, says upon hearing about reports of intentional infections at parties, he thought it was a joke or urban legend.
“We had seen over the last few weeks parties going on in the county, or throughout the city and county in several locations where students or kids would come in with known positives,” Randy Smith said.
“We thought that was kind of a rumour at first….we did some additional research….not only did the doctor’s offices help confirm it but the state confirmed they also had the same information.”
Tuscaloosa city councilor Sonya McKinstry says the news is undermining local efforts to beat coronavirus, and says the students’ actions “make no sense”.
“I think when you’re dealing with the mind frame of people who are intentionally doing stuff like that and they’re spreading it intentionally, how can you truly fight something that people are constantly trying to promote?” she told ABC News.
It comes just as Alabama lawmakers passed rules making face masks compulsory in public spaces, as the state reports 38,962 confirmed cases.
Other states that had reopened bars and restaurants in an effort to revitalise the economy, such as Texas and Florida, have recently had to reverse course and re-enter lockdown due to a spike in new cases.
Despite the US suffering the worst death toll of the pandemic, many Americans are still refusing to wear masks or adhere to social distancing measures.
Countless videos have gone viral online showing people throwing tantrums or becoming violent after being refused entry to shops or restaurants without a mask.