Headroom

The Tennessee Valley Authority is meeting with members of Congress about raising its $30 billion statutory debt ceiling. The federally owned utility's borrowing limit constrains how it can finance power infrastructure and capital projects, and the discussions signal TVA wants more headroom to fund its operations and expansion plans.

Headroomlabs has released Headroom, an open-source Python tool that compresses tool outputs, logs, files and RAG chunks before they are sent to large language models. The project claims 20 percent fewer tokens for coding agents and 60 to 95 percent fewer tokens for JSON, while returning the same answers, and ships as a library, proxy and MCP server.