From its formation on 25 April 1937, al-Khalidi was a member of the Arab Higher Committee as the party's representative.[3] On 1 October 1937, following disturbances and violence during the 1936–39 Arab revolt in Palestine, the British Mandate administration outlawed the AHC and several other Arab political parties and arrested a number of Arab political leaders. The Reform Party was one of the parties dissolved and Khalidi was one of the leaders arrested.[4] He was removed as mayor of Jerusalem and deported to the Seychelles, together with four other Arab nationalist political leaders.[4]