A dozen states are simultaneously pushing through legislation to undermine the Federal Reserves unconstitutional monopoly on money.
Originally published on The Free Thought Project
It’s no secret that the US economy is in dire straits. With the rising price of goods coupled with the devaluation of the dollar, inflation over the last several years is soaring as the reckless spending and money printing of the government continues unabated.
The financial hardships that Americans are experiencing are a direct result of the fiscal irresponsibility of government monetary policy which has caused a steady decline in the purchasing power of the dollar. From decades of debt brought about by the endless spending to finance forever wars, corporate bailouts, the bloated federal budget, rising taxes, and more recently, the disastrous wealth transfer of the COVID years in the form of the destructive economic impact of lockdown policies and the trillions printed in subsidies under the guise of “stimulus”; the US economy is comparable to the Titanic, and we the people are Jack Dawson.
However, as federal fiscal policy continues to take on water at least a dozen states are attempting to deploy life rafts, exercising their constitutional rights to enact legislation in hopes of once again making sound money an economic standard barer.
Article 1 Section 10 of the United States constitution expressly states that “No state shall… make any Thing but gold and silver Coin a Tender in Payment of Debts”. Based on this simple premise many, most notably former congressman Ron Paul, have argued for decades that the current US monetary system run by the Federal Reserve of printing debt based fiat dollars and policies of price fixing is not only destructive, but completely unconstitutional.
To that end, as of this writing the Tenth Amendment Center reports the states of Alabama, Arizona, Florida, Idaho, Iowa, Michigan, Missouri, Montana, North Dakota, Oklahoma, Tennessee, and Wyoming are all in the various stages of enacting bills that would recognize gold and silver as valid legal tender as the constitution stipulates, with more states likely to follow.
In Alabama, the state Senate unanimously voted 31-0 to pass the Alabama Legal Tender Act, SB130, filed by Sen. Tim Melson, which affirms “any refined gold or silver bullion, specie, or coin that has been stamped, marked, or imprinted with its weight and purity” would be recognized as legal tender in the state. The bill also includes a contract clause provision which states “No person shall be required to offer or accept any recognized legal tender … except as specifically provided for by contract or otherwise required by law.”
Which means that parties who voluntarily agree to pay or be paid in gold and silver coin or bullion cannot have that agreement substituted by Alabama courts for another form of payment such as Federal Reserve notes, thus protecting the parties from currency debasement.
The bill has now been referred to the House Financial Services Committee where it must pass a hearing by a majority vote before moving forward.
In Arizona, the state Senate approved Senate Bill 1096 (SB1096), sponsored by Senators Jake Hoffman and Rachel Jones, with a vote of 17-12 to establish a 100% gold and silver-backed currency recognized as legal tender, supported by a state-run bullion depository. The vote will now move on to the House for further consideration.
As TAC reports —
Under SB1096, Arizona would establish a fully backed gold and silver currency, recognized as legal tender. The measure requires the Arizona Department of Insurance and Financial Institutions to issue specie – defined as gold or silver coins minted to a standard shape, size, and purity – and establish a transactional currency backed 100% by physical gold or silver held in a state-run bullion depository.
The transactional currency would function as a representation of actual precious metals stored in the depository, allowing electronic transfers based on precise fractional troy ounce measurements. The depository would oversee all transfers, ensuring they remain fully backed by physical gold or silver.
As legal tender, both the physical specie and gold and silver-backed transactional currency could be used by individuals, businesses, and the state for debts, taxes, and everyday transactions – offering an alternative to inflationary fiat. The legislation states:
“A person or this state that holds the transactional currency may use that transactional currency as legal tender to pay a debt or may assign the transactional currency to another person or this state.
”By establishing a framework for sound money, SB1096 positions Arizona at the forefront of efforts to reduce reliance on the Federal Reserve’s fiat monetary system.
SB1096 will now go to the House and need to pass out of committee to move forward.
In Florida, House Bill 999 (H999) filed by Rep. Doug Bankson and Rep. Monique Miller also seeks to recognize gold and silver as legal tender as well as repeal state taxes on their exchange and use. The proposed law aims to have “specie legal tender” — which is defined as coins minted from “refined gold or silver in any shape or form, as adopted by rule by the Chief Financial Officer, which is valued primarily based on the content of the gold or silver and not on its form and function.” — recognized for the “payment of debts, public charges, taxes, or dues.”
Now H999 moves to the House committee and upon a hearing needs a majority vote to pass before continuing ahead in the legislative process.
In Idaho, the Idaho Constitutional Money Act of 2025, House Bill 177 (H177), passed the House State Affairs Committee with a vote of 66-3. The bill aims to officially recognize gold and silver as legal tender in the state and would be “accepted for the satisfaction of debts under the laws of the state of Idaho or of the United States.” The legislation specifically declares, “The state may also elect to use gold and silver coin and specie in conducting its business.”
Furthermore, the bill also includes a gold contract clause similar to the bill in Alabama which states “Unless expressly provided by statute or by contract, no person or other entity may compel another person or other entity to tender or accept gold or silver coin or specie unless agreed upon by the parties.”
H177 will now move to the Senate, where it will first need to pass out of committee before the full chamber has an opportunity to concur.
In Iowa, two bills have recently advanced through a House subcommittee aimed at supporting and expanding the use of gold and silver as money in the state. The first, House Bill 325 (HF325) introduced by Rep. Cindy Golding and seven cosponsors seeks to have the state treasurer to establish and issue a fully backed gold and silver transactional currency, and ensure a system for seamless transactions using sound money.
According to TAC, “Transactional currency” refers to digital representations of actual gold and silver held in a secure depository, allowing for seamless electronic transfers.
The second piece of legislation, House Bill 246 (HF246), filed by Rep. Taylor Collins aims to authorize although not require the state treasurer to invest certain state funds in “precious metals” defined as “gold, silver, or platinum, whether in coin, bullion, or another form.” And would also allow for the allocation of up to 5% of these funds to gold, silver, platinum, or certain cryptocurrencies, drawn from the general fund, cash reserve fund, and the Iowa economic emergency fund.
Both bills now move to the full House State Government Committee where they must pass by a majority vote before moving to the full House.
In Michigan, Rep. Alabas Farhat and two cosponsors filed House Bill 4086 (HB4086) as legislation to propose the establishment of a gold and silver backed transactional currency and bullion depository which the Tenth Amendment Center reports seeks to create the infrastructure to facilitate the everyday use of sound money, while also offering safe storage for precious metals.
TAC also notes that the physical specie held and issued by the depository would also be paired with a digital currency called “Michcoin” which would be completely backed by the reserves in the depository. “The treasurer would be required to ensure the holder of this digital currency could “use the specie as legal tender in payment of debt and readily transfer the specie to another person.”
Effectively allowing individuals and businesses to transact electronically using the currency backed by gold and/or silver held in the depository.
HB4086 has been referred to the House Committee On Communications and Technology and must pass a hearing by a majority vote before continuing in the legislative process.
In Missouri, two bills are moving through the state legislature. A House committee recently advanced House Bill 433 (HB433), introduced by Rep. Bill Hardwick and House Bill 630 (HB630) filed by Rep. Michael Davis. Both of which contain the same language and are companions of Senate Bill 25 (SB25), The Constitutional Money Act, introduced last December by Sen. Mike Moon.
The three primary aims of HB433 are to recognize gold and silver as legal tender, eliminate state capital gains taxes on both, as well as prohibit support for any federal confiscation schemes. On March 4th House Government Efficiency Committee approved both bills by a vote of 14-4.
HB433 will now move to the House Rules committee, and must pass a simple majority vote before moving ahead in the legislative process.
In Montana, the House Business and Labor Committee recently passed House Bill 382 (HB382) introduced by Rep. Tom Millett with a vote of 12-8. The bill requires “specie legal tender,” defined as “gold or silver coin that is issued by the United States” to be recognized as legal tender for payment of both public and private debts. According to reports from TAC the legislation would also empower “a court of competent jurisdiction” to declare other gold and silver coins and bullion not issued by the U.S. as legal tender.
The report notes the bill includes provisions specifically excluding central bank digital currency (CBDC) from serving as legal tender.
HB382 also includes language recognizing gold or silver contract clauses.
HB382 will now move to the full House for further consideration.
In North Dakota, the state House of Representatives passed House Bill 1183 (HB1183) filed by Rep. Daniel Johnston by a vote of 54-35 after first failing to pass in mid-February, before being brought back up for reconsideration.
According to the filing, the bill would require the state treasurer to invest at least 1 percent of all funds deposited in the state treasury into gold and silver, a move which advocates say could potentially strengthen the states financial stability, insulate against inflation, and reduce reliance on the Federal Reserve’s fiat currency system.
HB1183 has now been referred to the Senate Industry and Business Committee.
In Oklahoma, two bills are advancing through state legislature aiming to expand the types of gold and silver the state recognizes as legal tender while also establishing a 100% gold and silver-backed transactional currency.
Rep. Cody Maynard and Sen. David Bullard introduced both bills, House Bill 1199 (HB1199) and House Bill 1197 (HB1197), with each being passed by a vote of 12-4 and 13-3 respectively.
HB1199 would exempt gold and silver specie legal tender from taxation, while also including a gold contract clause which specifies “If a valid contract expressly designates a type or form of specie as tender, then an Oklahoma court asked to adjudicate the breach of such a contract shall require, as a remedy for the breach, the specific performance of tendering the type or form of specie specified in the contract.” Similar to other gold contract clauses mentioned above.
Also similar to previously mentioned bills, HB1197 would establish a transactional currency system allowing the state treasurer to issue a transaction card that enables Oklahoma residents to make purchases using gold and silver deposits held in a state-approved bullion depository.
TAC clarifies that gold and silver deposits, along with electronic transactions 100% backed by these metals, “shall be considered legal tender.”
The bills are the latest expansion to legislation passed in 2014 in Oklahoma which recognized gold and silver coins as legal tender.
HB1199 and HB1197 will both now move to the House floor for further consideration.
In Tennessee, Sen. Steve Southerland filed Senate Bill 985 (SB985) with the intent of officially recognizing gold and silver as legal tender in the state and establishing a bullion depository.
Though unspecified how the depository would run, SB985 would authorize the creation of a state bullion depository which would “serve as the custodian, guardian, and administrator of certain bullion and specie that may be deposited with the depository by this state, a political subdivision, or another instrumentality of this state, or by a private individual, party, or other entity.” it would also serve to facilitate “transactions and investments as authorized by rules adopted” by the commissioner of financial institutions.”
SB985 has been referred to the Senate Commerce and Labor Committee where it must pass a hearing by a majority vote prior to moving forward.
In Wyoming, Governor Mark Gordon has signed Senate Bill 96 (SF96) into law. Originally introduced by Sen. Bob Ide, the law will now require the state to hold at least $10 million in gold and silver reserves. Becoming the fifth state to legally recognize gold and silver as legal tender along with Utah, Oklahoma, Arkansas, and Louisiana.
As the Tenth Amendment Center reports,
Holding funds in gold and silver would protect the state’s cash reserves from the ravages of inflation caused by the rapidly depreciating value of Federal Reserve notes. Since 2020, the purchasing power of the dollar has dropped by nearly 20 percent. In that same period, the price of both gold and silver skyrocketed, reflecting the devaluation of the dollar.
Adding gold and silver in reserve could also create a pathway for Wyoming to maintain financial independence should the U.S. dollar collapse, a very real possibility as the world moves away from the greenback as its reserve currency.
SF96 states that gold and silver reserves will be held “for the purpose of diversifying the state’s investment portfolio, preserving capital and insuring against inflation, debt defaults, and other risks.”
A Brief History Of Dollar Devaluation
For more than a century the US dollar has been on a continuous downward slope of devaluation, thanks in no small part to the interventionist monetary policies of the United States government.
Indeed, from the very outset of our nations founding, paper money, that is, fiat currency, has had an abysmal history. As historian and staunch liberty advocate Dr. Clarence B. Carson once wrote for the Foundation for Economic Education, there is no constitutional basis for the issuance of paper money. More than just having no mention of it in our founding documents, the framers sought to have it that way when they themselves experienced the pitfalls of fiat currency with the deleterious effects of runaway inflation caused by the unredeemable bills of credit which were the continental dollar of the revolutionary war period.
As the continuous printing of the paper currency flooded the market without sound backing resulting in its inevitable irredeemability, the purchasing power of the bills collapsed. By the 1780’s the nation experienced its first economic depression.
However, as we fast forward nearly a century it is apparent that the federal government didn’t learn its lesson. The 1850’s and 60’s brought about new economic strife, and the worst was yet to come.
Former University of Maryland economics professor and president of the Mises Institute, Thomas J. DiLorenzo, argues quite convincingly in his book The Real Lincoln: A New Look At Abraham Lincoln, His Agenda, And An Unnecessary War the ways in which the Lincoln administration not only waged a war in pursuit of mercantilist economic subjugation, contrary to the humanitarian crusade long espoused in American history books, but unquestionably through his policies laid the ground work for the welfare-warfare state we’ve all come to know and loath.
Through excessive taxes and tariffs to pay for his war, as well as the mass inflationary impacts of unconstitutional legislation such as The Legal Tender Act of 1862 leading to the issuance of fiat greenbacks, and the National Bank Acts of 1863 and ’64 further centralizing the economy, by wars end the value of the US dollar had once again been rendered a fraction of what it was once worth.
A mere forty eight years later and arguably the most devastating blow to sound money systems and responsible fiscal policy came in 1913. That is the year president Woodrow Wilson signed the Federal Reserve Act into law.
Much can be, and has been, said about the Fed. So much so that to elaborate upon it in full here would double the length of this article. However in short, this private central bank (which isn’t actually federal and doesn’t actually have any reserves) uses open market asset purchases, market interference, and a monetary pumping process of fractional reserve banking as a means of artificially controlling interest rates and effectively creating “money” (backed up not by tangible assets, but debt) out of thin air. (See: How The Fed Operates — And Why It’s A Problem)
That is the short version.
The long version can be found through works the likes of Murray Rothbard’s What Has Government Done To Our Money?, G. Edward Griffin’s The Creature From Jekyll Island, and James Corbett’s esteemed documentary Century Of Enslavement: The History Of The Federal Reserve, through which one can see precisely, with painstaking detail and clarity, how the powers-that-shouldn’t-be effectively hijacked the American economy.
Since 1913, the purchasing power of the dollar has steadily declined. According to the American Institute for Economic Research Cost of Living Calculator, $1 in 1913 was worth as much as $31.69 in 2024.
Of course, as the chart above shows, the creation of the Federal Reserve was in fact not the final nail in the coffin for the dollar. Nay, that would come under the presidencies of Roosevelt and later Nixon.
For Roosevelt it would come in the form of his disastrous New Deal of 1933 and how its attack against the gold standard, making it illegal for citizens to own gold and effectively nationalizing the private property of millions of Americans, gave rise to the age of inflation.
Arguably the final nail in the coffin would come between the years of 1944 and 1971 when the Bretton Woods system would be implemented — reorganizing the world financial system to the whim of US and UK financial elitist’s, creating essentially “dollar imperialism”, and establishing the US dollar as the worlds reserve currency to be exchanged for gold at a fixed rate.
By establishing the dollar as the global reserve currency, paper money already heavily devalued and backed mostly by debt flooded the market. Subsequently, inflation skyrocketed and value plummeted. Still it was kept slightly afloat by what little bit of gold backing it had left. Until 1971. With Nixon’s closure of the gold window what little bit of tangible value the US dollar had left was gone. All we were left with is the flimsy petrodollar. The economy has spiraled ever since.
With the death of the petrodollar looming, the threat of Central Bank Digital Currencies on the horizon, and the clever bait and switch the Trump administration is currently playing on behalf of the deep state, seemingly opposed to CBDC’s while actually laying the groundwork for a public-private partnership of centralized US stablecoins, the time is now for Americans to get serious about reclaiming their financial independence.
Whether one prefers decentralized privacy cryptocurrencies like Zano, or physical assets such as gold and silver, the fiat currency ship is sinking. You’d better put on a life vest.
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