William Labov carried out literacy research throughout his career from the 1960s to 2010s. This developed in tandem with his linguistic documentation of African American Vernacular English. Both began in 1965, when Labov received funding for a three-year fieldwork project on Black youths’ language and schooling in Harlem, New York. Literacy was an important political issue in the 1960s, with substantial funding to raise basic education levels, as part of socioeconomic development agendas. In the US, this coincided with civil rights movements, shifting race relations, and a period of social unrest. In this article, Labov’s first phase of literacy research is traced through this historical moment, from the late 1960s to early 1970s. Also charted is the development of one deficit theory Labov contested during this period—cultural deprivation theory. Three parts are described: foundational conferences in 1964, research and reports from 1965–1968, and centers of contestation from 1969–1972. (Sociolinguistics, ethnography, literacy, reading, cultural deprivation theory)*