His first run for elective office was an unsuccessful campaign for the
New Jersey Senate in 1991, where despite the partisan nature of the election, and overwhelmingly Democratic composition of the district (only 6% of voters were registered Republicans), Schundler lost to incumbent
Edward T. O'Connor, Jr. by only a 55.1% to 44.9% margin. The next year,
Gerald McCann was removed as mayor of Jersey City because of a criminal conviction unrelated to his public duties, and Schundler entered the special election to finish the remaining eight months of McCann's term. He won the election with 17 percent of the vote, in a crowded field of 19 candidates. Like most major cities in New Jersey, Jersey City elections are officially nonpartisan. While Schundler never announced himself as a Republican on his campaign literature or ads, he was known to be a Republican based on his campaign for the State Senate a year earlier, and was thus considered Jersey City's first Republican mayor since 1917. Contributing to his victory was that two African American candidates split the black vote, and two siblings, Lou and Allen Manzo, also split a large number of votes. Once in office, Schundler developed a reputation as a politician who was incorruptible, which strongly resonated in a city with a long legacy of corruption dating to the
Frank Hague era in local politics. He subsequently won a full term in 1993 with 69% of the vote—the largest margin of victory since Jersey City returned to the
Mayor-Council form of government in 1961, and according to some sources, in the city's entire history. He won his second full term in 1997; while coming up short of a majority in the first round, he won the run-off by a substantial margin. During his tenure as mayor, Schundler reduced crime, lowered property taxes, increased the city's tax collection rate and property values, instituted
medical savings accounts for city employees and privatized the management of the city's water utility. He also led the battle to pass New Jersey's
charter school legislation. Moreover, according to a Harvard University study, during his tenure Jersey City led the 100 largest cities in the United States in job growth and
poverty reduction. The redevelopment and gentrification of waterfront Jersey City opposite lower Manhattan had begun during the McCann era, but it grew markedly during Schundler's tenure because of his policies, raising the per capita income in the city. Schundler attracted considerable national attention because he was the Republican mayor of an overwhelmingly Democratic city. During his tenure, Jersey City remained a Democratic stronghold, as it has been for over a century. Indeed, on the same night as Schundler's special election victory,
Bill Clinton carried
Hudson County (which includes Jersey City) by an overwhelming margin, which was enough to swing New Jersey into the Democratic column for the first time since
1964. Clinton carried Hudson County by an even larger margin in 1996. Additionally, no Republican has represented a significant portion of Jersey City in Congress in over a century, and Schundler was succeeded by a Democrat,
Glenn Cunningham, in 2001. Indeed, no candidate known to be a Republican has come anywhere close to winning a mayoral election in Jersey City since Schundler left office. ==2001 gubernatorial campaign==