The move, which also included legal permanent residents and visa-holders from those seven countries, sparked an outrage, although the ACLU won a temporary legal battle preventing detainees from being deported.
Thousands of protesters gathered in airports across the country, while Ivanka and Kushner dressed up to attend the black tie event.
Social media erupted in outrage over the image, which Ivanka shared on her Instagram and Twitter accounts without a caption.
Some were quick to insult Ivanka's style while others eviscerated the the couple for being "out of touch" and seemingly callous.
Christopher Ellers tweeted: "@IvankaTrump Oh, good, the world is burning and families are being torn apart, but you're decked out in tin foil. Cool. #MuslimBan"
User @dbvalentine wrote: "@IvankaTrump More unashamed displays of obscene wealth representing a complete detachment from reality #sad"
Another critic shared a photo of a refugee girl who crossed the Aegean Sea from Turkey to Greece with an emergency blanket draped over her shoulders and wrote: "She wore it better".
Cher, another Twitter user, chimed in, writing: "@IvankaTrump Your father is responsible for two senior citizens with green cards being illegally detained at O'Hare for 10 hours. Have fun!"
Kelly Oxford simply shared the photo, adding "Let them eat cake" - a quote often attributed to Marie Antoinette as the French starved during the revolution.
Others spotted Kushner's hand reflected in the mirror, and user @Arkansas_72701 tweeted: "No! No! No! You don't grab her butt, you're supposed to grab her pu**y! Didn't her dad teach you anything?"
The Alfafa Club dinner is known for attracting members of the Washington elite from senior staff to heavyweight donors.
Every president since Ronald Reagan has attended, but Donald Trump, who spoke to Russian President Vladimir Putin for an hour on Saturday - is said to have skipped out.