West Nile virus (WNV) is an arbovirus maintained in nature in a bird-mosquito enzootic cycle which can also infect other vertebrates including humans. WNV is now endemic in the United States (U.S.), causing yearly outbreaks that have resulted in an estimated total of 4–5 million human infections. Over 41,700 cases of West Nile disease, including 18,810 neuroinvasive cases and 1,765 deaths, were reported to the CDC between 1999 and 2014. In 2012, the second largest West Nile outbreak in the U.S. was reported, which caused 5,674 cases and 286 deaths. WNV continues to evolve, and three major WNV lineage I genotypes (NY99, WN02, and SW/WN03) have been described in the U.S. since introduction of the virus in 1999. We report here the WNV sequences obtained from 19 human samples acquired during the 2012 U.S. outbreak and our examination of the evolutionary dynamics in WNV isolates sequenced from 1999–2012. Maximum-likelihood and Bayesian methods were used to perform the phylogenetic analyses. Selection pressure analyses were performed with the HyPhy package using the Datamonkey web-server. Using different codon-based and branch-site selection models, we detected a number of codons subjected to positive pressure in WNV genes. Thirteen of the 19 completely sequenced isolates from 10 U.S. states were genetically similar, sharing up to 55 nucleotide mutations and 4 amino acid substitutions when compared with the prototype isolate WN-NY99. Overall, these analyses showed that following a brief contraction in 2008–2009, WNV genetic divergence in the U.S. continued to increase in 2012, and that closely related variants were found across a broad geographic range of the U.S., coincident with the second-largest WNV outbreak in U.S. history. West Nile virus (WNV; family Flaviviridae, genus Flavivirus) is a mosquito-borne virus maintained in a bird-mosquito enzootic cycle. WNV can occasionally infect other animals and humans, which are considered dead-end hosts because they produce too little virus in blood to re-infect mosquitoes. Most human infections (~80%) do not cause symptoms, and when symptoms do occur, they may vary from mild flu-like illness to fatal neuroinvasive disease (~1%). WNV can be transmitted by transfusion of blood and blood components and by organ transplantation, posing a risk to the blood supply and public health. There is no specific therapy or vaccine for WNV in humans. WNV now is one of the most widely distributed flaviviruses in the world. Comparative studies of WNV genetic sequences have described two major groupings of WNV, lineages I and II, and up to five newer lineages, which correlate well with the geographical point of isolation. Since 1999, WNV has spread from New York City throughout the U.S. and the Americas including Mexico, Canada, the Caribbean and South America. The emergence of WNV in the U.S. with annual outbreaks represents a unique opportunity to understand how a mosquito-borne virus adapts and evolves in a new environment. Viral adaptation to domestic mosquitoes and birds is considered to have played an important role in the spread of WNV in the U.S. Continuous surveillance of WNV genetic variation is needed to protect public health because the tests used to diagnose infection and screen blood, as well as vaccines and drug therapies currently in development, may not perform as well against newer genetic variants of WNV.