New Federated Learning Optimizer Improves Performance with Class Imbalance.

Haemin Park, Diego Klabjan, Martin W. Braun, Xiuqi Li, Balakrishnan Ananthanarayanan· July 3, 2026 View original

Summary

Researchers introduce FedCGNM, a client-side optimizer for federated learning that addresses class imbalance by grouping classes and normalizing momentum. They also propose FedHOO, an X-armed-bandit algorithm for efficient hyperparameter optimization in small-client federations.

Federated learning often struggles with class imbalance, where underrepresented classes lead to poor model performance. Traditional solutions are difficult to apply due to privacy and data heterogeneity constraints inherent in federated settings. This research introduces FedCGNM, a novel client-side optimizer designed to mitigate this issue. It works by partitioning classes into groups, maintaining a normalized momentum for each group, and using the sum of these normalized momentums for updates, effectively balancing gradient magnitudes and reducing noise from rare classes. The paper also presents FedHOO, an X-armed-bandit algorithm for optimizing resampling rates in small-client federations. This method leverages federated parallelism to efficiently evaluate multiple rate combinations at a linear cost. Empirical tests on various long-tailed benchmarks and a proprietary dataset show that FedCGNM consistently outperforms existing baselines, with FedHOO providing additional benefits in smaller-scale federated environments.

Why it matters

Professionals developing or deploying federated learning systems can leverage these advancements to build more robust and accurate models, especially when dealing with naturally imbalanced datasets common in real-world applications.

How to implement this in your domain

  1. 1Integrate FedCGNM into existing federated learning frameworks as a client-side optimizer.
  2. 2Experiment with FedHOO to optimize resampling rates for improved performance in small-client federations.
  3. 3Evaluate the proposed methods on proprietary imbalanced datasets to assess real-world impact.
  4. 4Consider the implications for privacy-preserving AI systems where data distribution varies significantly across clients.

Who benefits

HealthcareFinanceManufacturingIoTAutomotive

Key takeaways

  • Class imbalance is a significant challenge in federated learning, impacting predictive performance.
  • FedCGNM is a new optimizer that equalizes gradient magnitudes and mitigates noise from rare classes.
  • FedHOO offers efficient hyperparameter optimization for resampling rates in federated settings.
  • These methods improve accuracy and robustness in federated learning with imbalanced data.

Original post by Haemin Park, Diego Klabjan, Martin W. Braun, Xiuqi Li, Balakrishnan Ananthanarayanan

"arXiv:2607.01474v1 Announce Type: new Abstract: Class imbalance poses a critical challenge in federated learning (FL), where underrepresented classes suffer from poor predictive performance yet cannot be addressed by standard centralized techniques due to privacy and heterogeneit…"

View on X

Originally posted by Haemin Park, Diego Klabjan, Martin W. Braun, Xiuqi Li, Balakrishnan Ananthanarayanan on X · view source

Want to go deeper?

Turn these trends into skills with Learnijoy's hands-on AI & tech courses.

Explore courses