Continuity mistake: After Gracie is given the title of Miss Congeniality, Miss Texas (with her broken nose) and some others go up to hug her. As Miss Texas is hugging Gracie up at the podium in the first shot, the very next shot is a close-up of Victor and Matthews in the 'audience', and seen right in front of them in the audience is Miss Texas. (01:45:10)

Miss Congeniality (2000)
Plot summary
Directed by: Donald Petrie
Starring: Michael Caine, Sandra Bullock, William Shatner, Benjamin Bratt, Ernie Hudson, Candice Bergen
Gracie Hart is a tough-as-nails FBI officer. When her office receives a letter from a terrorist going by the alias "The Citizen", they figure out that he's planning his next act at the Miss America beauty pageant. Because Hart is the only female officer at her office, she's chosen to go undercover as the contestant from New Jersey. She is given a full make-over and is trained by a man named Victor. During the pageant, she learns not to judge people from the outside.
Cheryl "Rhode Island": My idea of a perfect date would be a man who takes me to a romantic dinner, and then we walk along the beach barefoot discussing books and - and music and - and movies.
Karen "New York": No wonder you're still a virgin.
Trivia: Ken Thomas and John DiResta who play FBI Agents Harris and Clonsky, are both ex-cops turned actors.
Question: When McDonald tells Hart "If you wanna stay, stay. But as a private citizen. Turn in your badge and your gun." Did he just fire her? Suspend her? Ask for her gun and badge so that if anything happened, she wouldn't give the FBI a bad name?





Answer: Somewhere between your second and third guess, in my opinion. Firing would require a far more complex due process under Federal rules. But McDonald certainly has the authority to determine what missions will and won't be pursued under the authority of the FBI. He's essentially telling her that this is a rogue action on her part, and she may not use her status as an FBI agent, nor her government issued weapon, to pursue it. She also won't be paid for her time and efforts in the process.
Michael Albert