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The purpose of the current study was to determine the impact of a diagnostic and formative assessment, mClass: Reading 3D (Amplify), on end of year third grade reading achievement. We took advantage of a staggered rollout of this assessment system in North Carolina to evaluate the effect of the assessment in 756 elementary schools using a fixed effects approach. This assessment showed positive and significant results on third grade reading achievement with an effect size of .26 standard deviations. The effect size is stable across racial and ethnic groups.