This is a comparative study of the cognitive, reading, and achievement levels of Italian Americans in bilingual programs and of their monolingual Italian and American peers. Three groups of students age 10 to 13 were matched within and across groups, according to schools, grade level, dialect, and socioeconomic status. Group I was subdivided into Italian Americans born in the United States and in southern Italy. Group II consisted of Italian students who emigrated from southern to northern Italy. Group III was composed of American students. Factors including number of years in the United States, sex, age, grade, environment, teacher estimate, and report card grades were analyzed. To examine cognitive and reading levels, a nonverbal intelligence measure and reading tests were administered. Achievement was determined by combining teacher estimates and report card grades. The data were then analyzed in order to: (1) indicate which of the variables (cognitive, reading, and achievement levels) are related within and among the three groups, (2) examine the differences among first and second language proficiency levels between groups, and (3) indicate the overall variance between first and second language reading and achievement levels within Group I. Relationships among the variables were determined, as well as factors related to each. The specific conceptual, language, and literacy needs of Italian American bilinguals were determined. (Author/JB)