Idaho Governor Vetoes Bill to Allow Gold and Silver in State Reserves

Idaho Governor Brad Little vetoed Senate Bill 1314, which would have authorized the Idaho State Treasurer to diversify state reserve funds with physical gold and silver. The bill, supported by Sen. Phil Hart and Rep. Barbara Ehardt, aimed to mitigate financial risks such as inflation and debt default. Despite passing both the Idaho State Senate and House, Gov. Little's decision leaves the state's reserves exposed to potential financial instability, underscoring a critical moment for the local mining industry and investors.

The proposed legislation intended to allocate up to 7.5% of state funds into secure gold and silver holdings. This move, supported by the Sound Money Defense League and numerous state activists, was seen as a strategic hedge against the deteriorating real value of traditional debt investments. Other states like Utah and Tennessee have embraced similar measures to fortify their financial reserves against inflation and market downturns, highlighting Idaho's contrasting stance under Gov. Little.

With Idaho's almost $10 billion in reserve funds currently invested in non-inflation hedged debt instruments, critics argue that the veto disregards both historical and practical financial wisdom. The bill's rejection also underscores Idaho's conservative positioning on the Sound Money Index, where neighboring states rank higher for embracing precious metals to safeguard economic stability.