The Governor vs. Gold: How Governor Little’s misguided veto is costing Idaho hundreds of millions of dollars in a tight budget year

This week, the Idaho Legislature returned to session, and the dominant issue will be navigating what many are calling a budget shortfall.

Last year, the Legislature passed more than $400 million in tax cuts. Combined with President Trump’s “Big Beautiful Bill,” these changes significantly altered the revenue streams Idaho has traditionally relied on.

Even so, Idaho’s budget situation would not be nearly as severe had the Governor not vetoed Senate Bill 1314 in 2024. That legislation would have allowed the State Treasurer to invest up to 7.5% of Idaho’s idle funds in precious metals. At the time, Idaho held approximately $5.7 billion in idle monies. A full 7.5% allocation would have amounted to roughly $435 million available for investment.

In July 2024, gold was trading at approximately $2,400 per ounce. That investment could have purchased about 181,250 ounces of gold. The primary ongoing cost would have been storage, which is something Idaho could have secured at a competitive rate, especially given that we have a unique in-state facility capable of handling secure precious-metal storage.

Today, gold is trading at roughly $4,600 per ounce which is an increase of $2,200 per ounce since the Governor’s veto. In real terms, that decision has cost Idaho nearly $400 million in unrealized gains.

To put this in perspective, idle funds typically earn about 4.3% annually. Gold has increased nearly 100% over that same period.

Silver’s performance is even more striking, rising over 200% in the last 18 months, from about $28 to $93 per ounce.

Had our Idaho Treasurer been permitted to split the investment between gold and silver, Idaho could have more than doubled its investment, generating well over half a billion dollars in gains.

Once again, Idaho’s executive branch demonstrated a lack of foresight and possible disregard for their fiduciary responsibility. Allowing strategic investment of idle funds into precious metals before the historic rise in gold and silver prices would have significantly reduced, or even eliminated the so-called budget deficit. It also could have provided meaningful direct and indirect support to Idaho’s precious-metal mining industry.

Instead, Idahoans are left asking a simple question:

Why aren’t we talking more about this missed opportunity?