Intended for educators, policymakers, and anyone concerned with the nation's reading skills, this booklet draws on four recent reports in the Nation's Report Card series, which are based on findings of the National Assessment of Educational Progress (NAEP). The first chapter discusses two important components of literacy--the ability to achieve a surface understanding of written materials and the ability to reason effectively about one's reading and writing. NAEP results are briefly discussed as a basis for the second chapter, which presents an overview of literacy development in America. The third chapter focuses on those who are at risk because of poor literacy skills, particularly children and young adults from minority groups and children without home support for literacy. The fourth chapter discusses the impact that an early exposure to print, appropriate instruction and homework can have on literacy skills. The final chapter explores two important initiatives for educators, policymakers, and the nation: (1) the at-risk population must be provided with targeted help to ensure that it has the opportunity to develop the literacy skills necessary for full participation in this society, and (2) educational approaches must be modified so that all children learn to reason more effectively about what they read and write. Recommendations derived from these initiatives are outlined for policymakers, administrators, and teachers. Graphs and statistical data are included. (JD)