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The study examined school functioning of Israeli Arab children with hearing impairment (HI) who were included in regular education classrooms, in comparison to their classmates with normal hearing (NH). Ninety-three children (60 NH and 33 HI), grades 1–6, participated. Teachers evaluated the children using the Arabic version of the Screening Instrument for Targeting Educational Risks (SIFTER; Anderson, 1989); they also reported children's achievement levels in Arabic and mathematics. Results demonstrated that the HI children's functioning was lower than that of the NH children. Children with unilateral and minimal hearing losses had lower functioning than those with more severe hearing loss. As grade level increased, functioning decreased among HI children. Use of the SIFTER was beneficial in detecting children with difficulties. Regular, ongoing SIFTER use and appropriate follow-up on the results may better enable each child to perform optimally in class.