WHERE to Generate Matters: Budget-Aware Synthetic Augmentation for Label Skewed Federated Learning

Federated learning has emerged as the foremost approach for decentralized model training with privacy preservation. The global class imbalance and cross-client data heterogeneity naturally coexist, and the mismatch between local and global imbalances exacerbates the performance degradation of the aggregated model. The agnosticism of global class distribution poses significant challenges for data-level methods, especially under extreme conditions with severe class absence across clients. In this paper, we propose FedReLa, a novel data-level approach that tackles the coexistence of data heterogeneity and class imbalance in federated learning. By re-labeling samples with a feature-dependent label re-allocator, FedReLa corrects biased global decision boundaries without requiring knowledge of the global class distribution. This modular, model-agnostic approach can be integrated with algorithmic methods to deliver consistent improvements without additional communication overhead. Through extensive experiments, our method significantly improves the accuracy of minority classes and the overall accuracy on stepwise-imbalanced and long-tailed datasets, outperforming the previous state of the art.

Federated learning (FL) enables collaborative learning of computer vision models, where privacy and regulatory constraints prevent centralizing data across devices or organizations. However, practical FL deployments often exhibit severe class imbalance and label skew, causing standard aggregation protocols to overfit dominant clients and degrade minority-class performance. We propose a data-free, class-wise contribution estimation and aggregation framework based on logit maximization (CELM) that does not require sharing raw data, client metadata, or auxiliary public datasets. The FL server probes client updates to obtain class-wise evidence scores and assembles a cross-client evidence matrix, which quantifies both per-class competence and class coverage. Using this matrix, we compute contribution weights that upweight clients providing strong, discriminative evidence for underrepresented classes. The resulting aggregation is stable due to simplex constraints and momentum smoothing, and it remains compatible with standard FL training pipelines. We evaluate the approach on representative vision benchmarks under controlled non-IID and pathological label splits, demonstrating that CELM-based aggregation improves robustness to imbalance and statistical heterogeneity, while yielding better performance without requiring any additional data exchange.

Asynchronous federated learning improves scalability by updating the global model from a server-side buffer of client updates as they arrive, rather than waiting for all selected clients to finish. While efficient, this arrival-driven aggregation can silently distort representation learning under heterogeneous participation. We identify silent rarity failure, a hidden failure mode in which clients holding rare labels contribute too weakly to the global model even though its overall accuracy appears largely unaffected. This failure arises from two coupled effects: rare-label clients may submit updates less frequently when they are slower or less available, creating participation bias; and once their updates enter the buffer, standard asynchronous aggregation assigns them no compensating influence, creating aggregation bias. We propose FedRAW, a fully server-side aggregation method that preserves rare-label influence without changing local training, client objectives, or communication protocols. FedRAW combines client-level update deduplication, which prevents frequently arriving clients from repeatedly dominating the update buffer, with rare-label-aware weighting, which increases the influence of clients carrying low-coverage labels. We formalize silent rarity failure through participation and aggregation bias, and show that FedRAW increases rare-label client influence over uniform aggregation while preserving convergence. Across EMNIST Balanced, CIFAR-10, HAM10000, and ISIC-2019, FedRAW improves rarelabel accuracy while preserving comparable global accuracy and adding negligible server-side computation.