Two paint manufacturers late Thursday withdrew an initiative from the November ballot that would have shielded them from a potential nine-figure court judgment and left taxpayers with a $2 billion bill for lead paint cleanup.

Legislative leaders said they cut a deal with The Sherwin-Williams Co. and Conagra Grocery Products Co. to drop the ballot measure in exchange for continued talks aimed at reaching “a resolution during the remainder of this legislative session.” Lawmakers also agreed to hold three bills related to lead-paint remediation.