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Paper · arXiv

When More Parameters Hurt: Foundation Model Priors Amplify Worst-Client Disparity Under Extreme Federated Heterogeneity

Federated learning (FL) is increasingly used to fine-tune foundation models (FMs) on distributed private data. The community largely assumes that large-scale pretraining serves as a 'rising tide that lifts all boats' in federated settings. However, our experiments reveal that these powerful priors can hinder rather than help the most disadvantaged clients under extreme heterogeneity. Through controlled experiments on federated text classification, we compare worst-client accuracy between TextCNN (2.7M parameters) and DistilBERT with Low-Rank Adaptation (LoRA, 66M parameters) across four Non-IID heterogeneity levels. Under extreme label skew (alpha = 0.1), DistilBERT+LoRA produces a worst-...

AuthorsKiran Naseer, Umar Shoaib
Primary categorycs.LG
Published9 May 2026
Last updated at source20 September 2026
cs.LG
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