Definitely backsliding.
We used to teach phonics, now a lot of schools use some bullshit called three-cueing which literally teaches kids to guess words they don't recognize.
“By the 1990s and early 2000s, research began to conclude that phonics was the necessary method of teaching reading to children, with an American congressional panel in 2000 concluding that the essential components of reading instruction were "vocabulary, comprehension and phonics". Programs began to re-incorporate phonics around this time, although three cueing remained a part of curriculums in the approaches of balanced literacy and whole language.[1][4] As of 2020, an estimated 75% of American teachers used three cueing”