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In page Idaho:

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In the early 1860s, when the U.S. Congress was considering organizing a new territory around Pikes Peak in the Rocky Mountains, the name "Idaho" was popular among the Congressional committee, as they believed it to be derived from a Shoshone[citation needed] term meaning "gem of the mountains."[1] Realizing in January 1861 the name was quite possibly a fabrication and not Native American at all,[2] the U.S. Congress ultimately decided to name the area Colorado Territory when it was created. But, by the time this decision was made in February 1861, the town of Idaho Springs, Colorado had already been named after their early frontrunner for a name, Idaho.