WASHINGTON—House and Senate lawmakers agreed to scrap the most contentious pieces of a nearly $900 billion defense and national security policy bill, such as restrictions on abortion and transgender care for service members, clearing the way for its passage by the end of the year.

Lawmakers who serve on both chambers’ Armed Services committees on Wednesday night released compromise text for the annual National Defense Authorization Act. This year’s NDAA, which lays out top policy priorities for the Pentagon, calls for a 5.2% pay raise for service members and military training assistance to Taiwan to help the island defend itself against a possible invasion by China.