Students in Grade 3 are REQUIRED to participate in the IREAD-3 State Assessment for Foundational Reading. This assessment tests a student's basic reading proficiency including phonics and vocabulary as well as reading comprehension for literature and nonfiction text. State statutes require students to PASS this test in 3rd grade. If a student does not pass during the first test administration window, they are required to receive remediation in reading and take the test again before the end of their 3rd grade year. If a student still does not pass, the student may be retained, provided a "Good Cause Exemption", or promoted to 4th grade where they will continue to take the test each year until they PASS.
Beginning the Spring of 2022, the IDOE is including all 2nd grade students in the test window. If a student passes the test as a 2nd grader, they will NOT have to retake the test again in 3rd grade. By taking the test in 2nd grade, schools will be able to better identify struggling readers to provide necessary remediation before the test is given again in 3rd grade.
Students in 4th grade that have not passed the IREAD-3 exam in their previous 3rd grade year, will be required to retake the exam again as a 4th grader. If a student will still be unable to pass the test in 4th grade, they will participate in remediation, and continue to test each year until PASSING (up to 6th grade).
https://www.in.gov/doe/students/assessment/iread-3/
Source: Indiana Department of Education