Development of English- and Spanish-reading skills was explored in a sample of 251 Spanish-speaking English-language learners from kindergarten through Grade 2. Word identification and reading comprehension developed at a normal rate based on monolingual norms for Spanish- and English-speaking children, but English oral language lagged significantly behind. Four categories of predictor variables were obtained in Spanish in kindergarten and in English in first grade: print knowledge, expressive language (as measured by vocabulary and sentence repetition tasks), phonological awareness, and rapid automatic naming (RAN). Longitudinal regression analyses indicated a modest amount of cross-language transfer from Spanish to English. Hierarchical regression analyses indicated that developing English-language skills (particularly phonological awareness and RAN) mediated the contribution of Spanish-language variables to later reading. Further analyses revealed stronger within- than cross-language associations of expressive language with later reading, suggesting that some variables function cross-linguistically, and others within a particular language. Results suggest that some of the cognitive factors underlying reading disabilities in monolingual children (e.g., phonological awareness and RAN) may be important to an understanding of reading difficulties in bilingual children.