Despite the tremendous job-creating potential and support of the business and labor community, the Obama Administration yesterday formally rejected a permit for the construction of the 1,700-mile Keystone XL oil pipeline from Canada to the Gulf of Mexico, which could have created as many as 250,000 jobs by 2035.

The U.S. Chamber reacted immediately, denouncing the political decision as a “job killer,” and noted that the decision “offers hard evidence that creating jobs is not a high priority for this administration.” Chamber President and CEO Tom Donohue later appeared on CNBC to offer the Chamber's position (watch video below).

Editorial pages across the country,  including those that frequently support the administration's policies, heavily criticized the president's decision:

"The White House also issued a statement denouncing Congress's 'rushed and arbitrary deadline,' which merely passed with overwhelming bipartisan support. This is, to put it politely, a crock. Keystone XL has been planned for years and only became a political issue after the well-to-do environmental lobby decided to make it a station of the green cross."-- The Wall Street Journal

"We almost hope this was a political call because, on the substance, there should be no question. Without the pipeline, Canada would still export its bitumen — with long-term trends in the global market, it’s far too valuable to keep in the ground — but it would go to China."--The Washington Post

"Keystone should be approved. This is a good project. It will give us energy and give us jobs. You want stimulus? This is a $7 billion deal to be done with private-sector funding."--Chicago Tribune

"The Obama administration's kick-the-can decision to reject the Keystone XL pipeline, at least for now, leaves a confusing muddle that exemplifies the continuing fecklessness of U.S. energy policy." -- USA Today

"President Barack Obama has made a shockingly shortsighted decision by rejecting a go-ahead for construction of the Keystone XL Pipeline. By doing so, Obama has openly proclaimed the primacy of his own re-election over the nation's long-term energy and economic security.” --Houston Chronicle

Here are some other reactions from around the worlds of business, organized labor, and government:

“This is a clear abdication of leadership on the part of the President. How can you say that you are for jobs and reject the largest shovel ready job in America. Mr. President, what are you thinking? …It’s a clear abdication of leadership on the part of the President and it’s a cynical decision that destroys 20-thousand U.S. jobs to save one, his own.”—Jack Gerard, President and CEO of the American Petroleum Institute, in a phone interview with Fox News Radio White House Correspondent Mike Majchrowitz.

“Once again, the president has sided with environmentalists instead of blue-collar construction workers — even though environmental concerns were more than adequately addressed. Blue-collar construction workers across the U.S. will not forget this. The Administration and environmentalists have blown the whistle on workers trying to feed their families and keep a roof over their heads. Instead of celebrating their victory by hugging a tree they should hug a jobless construction worker because they're the ones who are going to need it."--Terry O’Sullivan, general president of the Laborers’ International Union of North America

"I am dissappointed in the President's decision. Just as I have supported Montana's renewable energy jobs, I have long supported responsibly building this pipeline with the highest safety standards and with respect for private property rights. Oil, coal, natural gas, wind, geothermal and biofuels all provide good jobs in Montana."--Senator Jon Tester (D-MT)

“The President’s rejection of the Keystone XL project is a serious blow to job creation and a major setback to energy security. The decision to say no to a project that would create 20,000 manufacturing and construction jobs – with an additional 118,000 indirect jobs – defies logic when the U.S. is suffering from high unemployment and a struggling economy. For America’s future, it’s always better to choose sound policy over politics. Instead the Administration followed the political winds and rejected a clear way to create jobs. – National Association of Manufacturers (NAM) President and CEO Jay Timmons

“In its report yesterday, the President’s Council on Jobs and Competitiveness declared it imperative that the United States adopt an ‘all-in’ approach toward energy development. One day later, the State Department walks away from a project that would create thousands of jobs, strengthen the economy and help America move toward energy security. That’s not going ‘all-in’ on energy, that’s folding your hand.” – Business Roundtable President John Engler

“Obama's decision to say no to the Keystone pipeline is simply devastating to the nation's economic recovery.  The White House is more concerned with giving taxpayer-guaranteed loans to bankrupt 'green' energy firms that neither produce energy nor create jobs than with securing natural resources for the American people at a cheaper price and creating tens of thousands of jobs. Obama is officially a jobs killer.” -- Americans for Limited Government President Bill Wilson

“Prime Minister Harper expressed his profound disappointment with the news. He indicated to President Obama that he hoped that this project would continue given the significant contribution it would make to jobs and economic growth both in Canada and the United States of America.”—Canadian Prime Minister’s office

Watch Tom Donohue on CNBC's The Kudlow Report.