The first part of this report reviews the different types of formal assessment measures that have been used to evaluate the language and literacy performance of second-language learners of English in the United States, including language proficiency tests, reading readiness tests, standardized reading tests, basal reading tests, and statewide reading tests. The second part of the report explains informal assessment and describes the various types of classroom activities that teachers can use to evaluate and facilitate the literacy development of second-language students in both bilingual and non-bilingual settings. Activities presented include classroom observation, oral miscue analysis, story retellings, tape recordings of oral reading, reading logs, reading response logs, think-alouds, writing folders, and student-teacher conferences. The report concludes by noting some of the limitations of informal assessment and by pointing out that an informal assessment program can provide classroom teachers with a comprehensive profile of second-language students' literacy strengths and weaknesses. (Author)