This report describes students' reading achievements at grades 4, 8, and 12 and within various subgroups of the general population. State-level results are presented for individual states that chose to participate in the 1994 Trial State Assessment. Chapter 1 presents an overview of the 1994 NAEP reading assessment and sample questions and responses. Chapter 2 provides overall average proficiency results for the nation, regions, subgroups of students, and jurisdictions participating in the Trial State Assessment. Chapter 3 describes students' reading performance in terms of achievement levels. Chapter 4 focuses on cross-state comparisons of proficiency results from the state-by-state assessment at grade 4. Chapter 5 describes contextual factors related to students' reading achievement. Chapter 6 describes specific abilities demonstrated by students in the NAEP reading assessment and reports student performance when reading for different purposes. The "most striking" finding from the 1994 assessment is that the average reading proficiency of 12th-grade students declined significantly from 1992 to 1994. Other major findings include: (1) the decline in average proficiency among 12th-graders between 1992 and 1994 was concentrated among lower performing students; (2) reading proficiency at all three grade levels was higher on average for students whose parents had more education; (3) at all three grade levels, female students had higher average reading proficiencies than male students; and (4) students who reported having a greater array of literacy materials in their homes displayed higher average reading achievement. Contains 38 tables and 23 figures of data. Appendixes provide an overview of procedures used in the 1994 assessment and describe students' reading performance; cross-state proficiency and achievement level results; and sample texts and questions. (RS)