Hi there! The municipality has a WordPress site that attracts between 17,000 and 20,000 visitors per day. Over the past year, the site has been hosted on a shared server, but it has been crashing more frequently due to high traffic.
The provider suggested two options: continue with the current setup (which leads to frequent outages) or switch to a more powerful hosting service, which would cost $200. Can you suggest a suitable hosting service for a high-traffic WordPress site at a reasonable price, preferably located in the USA?

If you don't have any specific services and you expect all options in cPanel and WHM to work as usual, you can look at a2hosting's terms and conditions.
A2hosting offers better conditions than, for example, Godaddy, also low prices and good speed.
Just a fast hosting with a small budget.
They declare 99.9% availability, they are ready to provide one hundred gigabytes on SSD disks. For the municipality, I think it's enough.

In fairness, it is worth noting that their technical support is a bit lazy.

In my opinion, a fairly economical and high-quality provider Accuwebhosting.
99.9% availability, Isolated WordPress Accounts, caching servers for WP, DDoS protection, 150 mail acc...
Prices start at $3.99.
The headquarters and main data center are located in Denver.

Here is another good hosting with very budget rates: Hostens
This is a company from Lithuania, servers are located in the USA and Singapore.
99.95% uptime.
Your domain can be transferred to them, support is free.
$0.90per month when paying for 3 years.
Try first a month for $3, then decide.
I don't think you will be disappointed.

I use Name.com
I've been using it for a long time, I can only say good things. A convenient backend is offered, and I'm used to the control panel.
Last year I even got a free domain. Reliable, fast services. For WP special conditions.
Good support, they say. There was no need to contact.
Location: Denver, Colorado.

Excluding free hosting options is a must when it comes to serious websites. Avoid cheap or free offers from hosting providers if you plan on developing a long-term project, as it may lead to server instability, limited functionality and unwanted advertising on your website.
Take time to thoroughly research the hosting provider's site before studying the technical specifications of their servers. Ensure they are officially registered and have a license to provide web services. Check how long they have been operating and if their customer service support is available 24/7.

It can be challenging to choose the technical parameters of web hosting if it's your first time doing so. It's recommended that you consult an experienced specialist or make intuitive choices based on your site's needs.

DreamHost is known for its budget-friendly packages for e-commerce, but their Shared Hosting option may not be your first choice. Keep in mind that virtual web hosting is a better option than it seems and web hosting for e-commerce comes in different forms. Be prepared to pay for software, plugins, transaction fees, and website creation tools.

If you are looking for hosting for a website with high traffic, then you should look for hosting companies that offer a high level of network bandwidth, good scalability and good response.
Look at the prices of Liquid Web and A2 Hosting.

The big thing for me is the uptime, and reliability, alongside good prices (in comparison with quality) and I also like to see some good support just for peace of mind.

The best place to search for affordable web site hosting plans is the internet itself.
In this kind of tight spot, it is good to evaluate well the web hosting providers.
Pretty good hosting solutions you'll find at Rockhoster.com and Hostnamaste.com
Easy setup in control panel as well, and an excellent price.

Any specific server location?
It should be close to the target location of your audience, it will help in terms of faster speed connectivity.