Christie's Inauguration Overshadowed by Scandal

The New Jersey governor denies latest allegations he threatened to withhold Hurricane Sandy relief.
3:00 | 01/21/14

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Transcript for Christie's Inauguration Overshadowed by Scandal
Now to New Jersey governor Chris Christie. Today's inauguration overshadowed by the latest allegations. His administration denying charges they threatened to withhold hurricane sandy relief to a badly flooded city unless its mayor backed one of the governor's pet projects. ABC's Jim Avila is here. Has the latest on all that. Good morning, Jim. Reporter: Good morning, robin. They have changed for no ways from hoboken. The governor's office fighting new charges when they hoped to be looking ahead. Inauguration day, a celebration, an honor for Chris Christie and Kim Guadagno. Instead another scandal. New Jersey's second highest government official denies she tried to bully the small town mayor of hoboken by tying sandy relief money to a building project the governor liked. I deny any suggestion made by mayor zimmer that there was ever any condition placed on the release of sandy funds by me. Reporter: A denial hoboken's mayor said she expected. Overnightsticking by her story and willing to take a lie detector test to prove it. She said this to me. You know, and I stand by my word. Reporter: This is not at all according to plan for the governor's brain trust. January was supposed to be a month long Christie fest, hosting the super bowl. The super bowl is in new Jersey. I think Chris Christie really expected these to be his glory days. Reporter: Instead forced to play scandal whack-a-mole with now favorable polls falling. They don't believe he was blindsided by scandal leading the governor to make the understatement of the week in an interview with Yahoo! News, I will learn things from this and when asked because of this uncharacteristically rough patch if he was a better candidate, Christie said I'm reddier,s if they a word. Now, governor Christie's office has been aggressive in its denial. You can almost see governor Christie shaking his head at the same time. Not quite what they thought today would be. He'll try to get back on message. He's told all these funders don't come to me for another year about the presidential race. I got to pay attention to new Jersey. He knows he has work to do. Okay, Jim, thanks very much.

This transcript has been automatically generated and may not be 100% accurate.

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