Students who failed the Texas mandatory third grade reading test were followed through their sophomore year in high school. Comparisons of reading scores between third grade students who repeated the grade and their socially promoted classmates revealed that the positive effect of retention persisted over time. Retention in third grade benefited low‐performing readers regardless of race. Supplemental analyses found that the results are not likely attributable to selection biases, differential attrition of students from the panel, changes in the special education status of students, and regression to the mean effects. Making students repeat a grade, when supplemented with additional educational assistance, can benefit academically challenged children.