Early literacy progress and challenges in Indiana
In the 2023-2024 school year, 82.5% of students demonstrated literacy proficiency—an increase from 81.9% in 2023. (Getty Images)
Early literacy forms the foundation on which a child's academic and life success is built. Extensive research shows that children who achieve reading proficiency by third grade are more likely to graduate high school, pursue higher education, and secure stable employment. In contrast, those who struggle with reading at this critical stage often encounter greater obstacles both academically and in life.
As Indiana works to improve early literacy rates, the latest Indiana Reading Evaluation and Determination (IREAD-3) results highlight both progress and persistent gaps demanding urgent attention.
Each year, Indiana's third graders take the IREAD-3 assessment, which evaluates foundational reading skills such as phonics, vocabulary, and comprehension. In the 2023-2024 school year, 82.5% of students demonstrated literacy proficiency—an increase from 81.9% in 2023. While this improvement is encouraging, overall proficiency levels remain below pre-pandemic rates, underscoring the lingering impact of COVID-19 on early education.
More concerning are the disparities found among student populations. Twenty-seven of Indiana's 92 counties had proficiency rates below the state average, 5 more counties than in 2023. Special education students had the lowest overall proficiency, with a 31.1 percentage point gap compared to their general education peers, and English learners' proficiency was over 21 percentage points lower than that of non-English learners. Students from low-income households also showed lower proficiency rates, highlighting the impact of economic disparities on early literacy.
Literacy development begins long before a child enters kindergarten. The first five years are a critical period of brain development, shaping cognitive, social, and emotional growth. High-quality early learning environments, rich language exposure, and supportive relationships with caregivers are essential for early literacy success.
Unfortunately, many Indiana children face barriers to these experiences. Approximately 42% of children under age three live in households with incomes below twice the federal poverty level, and 18% of children under five live in poverty. Financial hardship often brings additional stressors, such as food insecurity and unstable housing, which can hinder early learning. Chronic absenteeism—heightened by the pandemic—remains a significant concern, particularly for students from low-income families, who may face transportation challenges or other obstacles to consistent attendance.
Despite these challenges, Indiana has made strides in providing early intervention services, with high participation rates in developmental screenings, early intervention programs, and home-visiting services, all of which positively impact school readiness and long-term achievement. Expanding Access to Quality Early Learning
Access to high-quality early childhood education is a proven strategy to foster literacy and close literacy gaps. Research shows children attending such programs demonstrate stronger reading and math skills in later grades.
The state's On My Way Pre-K program provides access to high-quality preschool for low-income four-year-olds. However, Indiana's funding for such programs remains among the lowest in the nation. Furthermore, many children, particularly in rural areas, lack access to quality preschool programs. Investment in early education systems benefits not just individual children but also strengthens the state's workforce and economic future.
Indiana has taken promising steps to enhance literacy through innovative programs and strategic investments. A $9.5 million investment from Lilly Endowment Inc. supports literacy through out-of-school time (OST) programs. Led by the Indiana Afterschool Network, this initiative reinforces in-school learning through before-school, after-school, and summer opportunities. Using the Science of Reading framework, the program strengthens word recognition and language comprehension. Launching in 2025, the initiative will provide grants, professional development, and workforce credentials for OST staff to ensure high-quality literacy programming.
Another program having a positive impact on literacy is the Imagination Library of Indiana, which fosters a love of reading among young learners by ensuring access to free monthly books. Through Dolly Parton's Imagination Library, children receive high-quality books at no cost, helping them build home libraries and develop early literacy skills. Research has validated this program's effectiveness in improving reading readiness and inspiring a culture of literacy in families across the state.
Reach Out and Read Indiana is another evidence-based program dedicated to giving young children a foundation for success. Integrating books into pediatric care, this model provides training and resources to pediatric clinicians to promote shared reading and meaningful family interactions. Research has shown that building strong foundational relationships through reading together can mitigate the negative effects of adverse childhood experiences (ACEs). Recognized by the American Academy of Pediatrics, Reach Out and Read strengthens early literacy and relational health, helping children develop resilience and lifelong learning habits.
These initiatives, together with current state efforts, demonstrate Indiana's commitment to enhancing early literacy through both in-school and out-of-school learning opportunities.
Improving literacy outcomes requires taking a multi-faceted approach, with support beginning in early childhood and running through elementary education. In 2022, Indiana set a goal for 95% of third graders to achieve reading proficiency on IREAD-3 by 2027. The following year, the Indiana General Assembly adopted the Science of Reading as the foundation for literacy instruction. In 2024, a bill enforcing retention for third graders not proficient in reading was passed and came into effect for the 2024-2025 school year.
Despite these efforts, too many young Hoosiers lack foundational reading skills. As families, teachers, youth workers, clinicians, local and state elected leaders, and employers who want to see our children succeed consider next steps, we must work together.
A strong commitment to evidence-based action can transform early literacy in Indiana. Doing so will equip all our students, regardless of background, with the foundational reading skills essential to the future of our children, workforce, and communities.
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