Johnson said she never intentionally broke the rules and did not "personally benefit" from the scholarships.
Each caucus member is given $10,000 in scholarships a year to give to students in their district. The only eligibility requirements are that they live within the district, have a minimum 2.5 grade point average and are not related to a caucus member.
The foundation's lawyer said Johnson's actions are of "great concern," adding that the foundation works on an "honor system."
"It is inappropriate for a lawmaker to certify the award of a scholarship to a relative in a situation where the lawmaker (or their staff) is involved in the selection of the recipient," said Amy Goldson. "Scholarship funds awarded to an ineligible student must be returned."
Johnson said she would cooperate.
"While I did not personally benefit, I never intentionally violated any rules and I have never restricted my helping a student based on his/her residence. In order to avoid any further appearance of impropriety, I will work with the [foundation] to rectify the financial situation," she told the News in a statement.
A spokesman for the CBC did not immediately return a request for comment.