New forms of assessment are required in order to develop and evaluate the more complex skills students need to succeed in the rapidly changing U.S. society and economy. The modern workplace requires students to demonstrate well-developed thinking skills, problem-solving abilities, design strategies, and communication capabilities that cannot be assessed by most currently used multiple-choice tests. Performance assessments—widely used around the world and increasingly sought in the United States—allow students to demonstrate their knowledge more fully and authentically by directly exhibiting a skill, reporting on an investigation, producing a product, or performing an activity. By measuring students’ abilities to apply knowledge to solve meaningful problems, such assessments encourage and support more rigorous and relevant teaching and learning. Research and development supporting the effective design and use of such assessments encourages their wider use at all levels of schooling, including in college admission, placement, and advising decisions.