Literacy is in decline in many parts of the world, accompanied by drops in associated cognitive skills (including IQ) and an increasing susceptibility to fake news. It is possible that the recent explosive growth and widespread deployment of Large Language Models (LLMs) might exacerbate this trend, but there is also a chance that LLMs can help turn things around. We argue that cognitive science is ideally suited to help steer future literacy development in the right direction by challenging and informing current educational practices and policy. Cognitive scientists have the right interdisciplinary skills to study, analyze, evaluate, and change LLMs to facilitate their critical use, to encourage turn-taking that promotes rather than hinders literacy, to support literacy acquisition in diverse and equitable ways, and to scaffold potential future changes in what it means to be literate. We urge cognitive scientists to take up this mantle—the future impact of LLMs on human literacy skills is too important to be left to the large, predominately US-based tech companies.