Sen. Joni Ernst plans to redirect a $1,031,000 DOJ earmark awarded to Generation Hope MN after reporting found the nonprofit lists an address shared with Sagal Restaurant in Minneapolis. Generation Hope MN, founded in 2019, says it provides addiction recovery, mental health, housing and job-readiness services for East African communities. Ernst's office cited IRS filings and the shared-address finding in proposing the amendment; the move occurs amid a wider Minnesota fraud investigation tied to alleged COVID-era schemes and resulting political fallout.
Ernst Moves To Redirect $1.03M Earmark From Somali-Led Recovery Group After Shared-Address Report
The office of Rep. Ilhan Omar said on its website that the fiscal year 2026 funding to Generation Hope would be used to address the "opioid crisis."
Republican Sen. Joni Ernst is preparing an amendment to reroute a $1,031,000 Department of Justice earmark away from Generation Hope MN, a Somali-led addiction recovery nonprofit in Minneapolis, after reporting found the group's listed Cedar Avenue address is the same building that houses Sagal Restaurant and Coffee.
Ernst is readying an amendment in the Senate to redirect the more than $1 million in funding to a Department of Justice account dedicated to fraud prevention and enforcement, Fox Digital learned.
What Officials Say
Ernst told Fox News Digital she is alarmed by what she described as widespread fraud in Minnesota and said Congress should redirect funds to protect taxpayers and support fraud enforcement. Her office says the earmark was originally secured by Rep. Ilhan Omar and is co-led in the Senate by Sens. Amy Klobuchar and Tina Smith.
Homeland Security investigators were part of a large fraud investigation on Monday in Minneapolis following the release of a video over the weekend on alleged daycare fraud.
The Shared-Address Findings
Generation Hope MN, a 501(c)(3) founded in 2019 to serve East African communities in the Twin Cities, lists two Minneapolis locations on its website: one on Cedar Avenue and another on Harmon Place. Fox News Digital reported that the Cedar Avenue address corresponds to a building that also contains Sagal Restaurant and Coffee; the restaurant's owner, Fartune Del, told Fox News Digital that the nonprofit operates out of office space above the café.
Democratic Gov. Tim Walz dropped out of his re-election effort Jan. 5, 2026, amid the fallout of the fraud scandal.
Funding Use And Documentation
According to documents from Rep. Omar's office, the fiscal year 2026 funding would combine workforce-readiness programming with addiction recovery, mental health services and housing support, including job training, peer support and partnerships with apprenticeship programs. Ernst's office also highlighted IRS Form 1023-EZ entries that list the three leaders of Generation Hope MN as residing at the same five-bedroom Minneapolis house, a detail Ernst's team cited in pressing for reassignment of the funds.
Broader Context
The push to redirect the earmark comes amid a large Minnesota fraud investigation that prosecutors say involves alleged COVID-era schemes tied to meal and housing programs, daycare centers and Medicaid services. Dozens of arrests have been made since 2022; local officials have suggested total losses could be substantial as the probe continues. The scandal has produced political fallout in Minnesota, including Gov. Tim Walz's decision to drop his re-election bid.
Responses And Next Steps
Fox News Digital reported it reached out to Generation Hope MN, Rep. Omar, Sens. Klobuchar and Smith, and to cofounder Abdirahman Warsame for comment; those outlets had not provided immediate responses at the time of reporting. Ernst's amendment would move the $1,031,000 into a DOJ account dedicated to fraud prevention and enforcement while investigations continue.
Note: The article attributes claims about fraud and funding actions to the offices and sources cited. Allegations referenced in the report remain subject to investigation and legal process.
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