People tend to use the terms "Reading" and "Literate" to be interchangable but they really aren't. I'm sure there are plenty of kids (and adults) who "literally" can't read words and rely heavily on TTS and perhaps STT to interact with the world via their devices.
However the larger and probably more dire issue is of literacy which means you're not only able to read the words but fully understand them and make connections between ideas and be able to communicate what you read to other people. That's the idea that really matters because it unlocks an entire universe of additional learning and a deeper understanding of the world.
The lack of actual literacy is, in my opinion, why America is in such a pickle because there are probably generations of people at this point who fundamentally do not understand what is going on around them (and certainly don't understand any half-way complicated topic or situation) and just float around on "vibes" and their emotions (which they likely also do not understand fully).