The 1994 NAEP (National Assessment of Educational Progress) Reading Assessment was administered to a national sample of students in grades 4, 8, and 12. National reading proficiency results were reported for students at each grade and within various subgroups of the population. State-level results were reported for individual states or jurisdictions that chose to participate in the 1994 Trial State Assessment. Major findings for the nation, regions, and states include: the average reading proficiency of twelfth-grade students declined significantly from 1992 to 1994; the decline in reading proficiency was concentrated among lower performing students; and the percentage of twelfth-grade students who reached the "proficient" level in reading declined from 1992 to 1994. Major findings for student subgroups include: across the nation, there were declines in average reading proficiency from 1992 to 1994 for Hispanic students in grade 4 as well as for White, Black, and Hispanic students in grade 12; reading proficiency at all 3 grades was higher on average for students whose parents had more education; and students attending nonpublic schools displayed higher average reading proficiencies than their counterparts attending public schools. Contextual factors related to higher average reading proficiency include: having a wide array of literacy materials in their homes; reading for fun on their own time; watching less than 4 hours of television daily; and being asked by their teachers to explain or support their understanding of what they read. (RS)