House lawmakers passed the resolution along party lines on Wednesday in a vote of 213-209, with six members voting present.
Moments after the vote, House Democrats began heckling McCarthy in the lower chamber, shouting "shame."
“Adam Schiff abused his position as chair of [the House Intelligence Committee] to lie and lead America through a national nightmare with the fake Russia collusion narrative,” House Speaker Kevin McCarthy said in a statement.
Schiff "abused his trust” by alleging he had evidence of collusion between Trump and Russia that, as subsequent probes have released, never existed, according to the resolution. Schiff spread false accusations for years and abused his privileged access to classified information, the resolution said.
Moreover, the resolution accuses Schiff of misleading the American people and bringing “disrepute” upon the House of Representatives.
The resolution censures Schiff and directs the House Ethics Committee to conduct an investigation into Schiff’s actions.
Ahead of the vote, Schiff offered his thanks to Democratic colleagues who had attempted to strike down the measure, saying: "You honor me with your enmity. You flatter me with this falsehood. You, who are the authors of a big lie about the last election, must condemn the truth-tellers and I stand proudly before you. Your words tell me that I have been effective in the defense of our democracy and I am grateful."
He later added that he would wear the "partisan vote as a badge of honor."
The measure, introduced by Rep. Anna Paulina Luna (R-FL) last week, was initially rejected by Republican lawmakers after officials deemed the multimillion-dollar fine attached to the resolution unconstitutional. GOP officials backed the measure once the fine was dropped.