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By 2021, 42 states adopted early literacy policies to improve literacy by the end of third grade. We examine the impacts of these policies on high- and low-stakes test scores using an event-study approach and find that adopting an early literacy policy improves elementary reading achievement on high-stakes tests. The largest gains occur in third grade and in states with comprehensive policies, particularly those with third-grade retention. Furthermore, we find suggestive evidence that early literacy policies reduce socioeconomic and racial test-score gaps in reading. We find little evidence of gains in low-stakes test scores. Our results suggest that early literacy policies improve achievement on high-stakes tests but may not improve literacy learning.