Throughout the Chimeran War, America was initially neutral in the conflict until the military liberation of the United Kingdom. Ultimately, the nation became invaded by the Chimera in August 14th, 1951. And from August to November, the Upper Midwest became under gray territory, creating a war front in the north. The invasion resulted in millions of displaced refugees being forced to settle in Protection Camps within and near the Liberty Defense Perimeter or living in makeshift shanty towns (with reasons given that the Protections Camp were under harsh draconian policies), and food shortages became rampant due to the Chimera's weather-changing technology affecting the nation's farmlands. Worried that the situation affecting America would not get better, and fearing that the technologically superior Chimera could potentially succeed in conquering America, President Noah Grace (selfishly) decided to try negotiating with the Chimera.
The terms of the intended truce were basically that America would not impede the Chimera in their conquest of the world, in exchange for the Chimera leaving America in peace. However, Grace and his cabinet realizes that the Chimeran entity known as Daedalus is the only Chimeran being that is communicable in the negotiations and that capturing him remains the top priority in the negotiations. Presidential Chief of Staff William Dentweiler was tasked in overseeing the capture of Daedalus.
Learning that Daedalus possessed superior mental powers and human feelings for his wife Hannah Shepherd, Dentweiler procured Hannah to Sheridan, Wyoming and had government agents torture her in sending a mental signal to Daedalus and lure him to rescue his wife. After Chimeran forces dispatched by Daedalus rescued Hannah, American forces followed them to Daedalus' location due to a tracking transmitter implanted in Hannah's hair, and were able to capture Daedalus by firing harpoons containing 2000 cc of sedatives into the creature. Daedalus was later brought and confined in a secret base near Sheridan and implanted with a electrode to prevent him from using his powers. Also, in order to convince Daedalus to cooperate, Hannah was kept at Sheridan to be used as a hostage.
On December 24th, President Grace traveled to Sheridan, under the guise of his Victory Tour, and confronted Daedalus. Grace revealed his offer to Daedalus (unaware that Daedalus inwardly laughed at Grace's presumption), but after finishing the details of his offer Grace was then killed by Nathan Hale, who later learned from former Secretary of War Henry Walker's recordings about Project Omega. Shortly after Grace's death, Daedalus escaped from his confinement to the safety of a nearby Chimeran warship that was present outside of Sheridan, as part of the negotiations. Before departing, Daedalus ordered the ship to destroy Sheridan and its surroundings in retaliation for his captivity.
The knowledge of Project Omega and the death of Noah Grace became secretly covered up and supposed negotiations between the Chimera and the United States was entirely dashed. Grace's death was announced by his successor Vice President Harvey McCullen on December 25th, blaming his predecessor's cause of death as a "sudden illness."