Vian Dakhil - the only Yazidi in the Iraqi Parliament - was set to attend a ceremony to collect the Lantos Human Rights Prize on 8 February.
Under the executive order signed by Donald Trump last Friday, Iraqi nationals have been banned from entering the US for 120 days.
According to the Lantos Foundation, Dakhil is top of the IS "most wanted" list for her work exposing their genocidal campaign against the Yazidi community in Iraq.
The Foundation say she was awarded the prize because "she has personally conducted ongoing rescue missions on behalf of thousands of women and girls who remain enslaved by the radical terror group in Iraq and Syria".
Dakhil told Religion News Service: "I'm not against any president who is willing to protect his country and his people. He has the right to restrict the entrance of terrorists to US."
"I just feel sad that we who have suffered from this terrorism inside Iraq, have now been treated the same as them. With this ban Mr Trump has put the torturer and the victim on the same level."
The Lantos Human Rights Prize was established in 2009 to honour the work of people who fight for human rights.