In the dystopian future of America depicted by Samira Ahmed in Internment, the right-wing government has just imposed a total immigration lockdown. What this means is that no immigrants whatsoever are to be allowed into the country. As David tells Layla, this applies to tourists, too. Even if you're a non-Muslim from a majority Muslim country, you won't be allowed in. This is all taking place in the wake of the government's expansion of the ban on Muslims.
It's a pretty grim situation, to say the least. To make matters worse, David then makes a suggestion to Layla that hits her like a punch in the gut. He comes up with the idea that if Layla's parents cooperate with the authorities—such as by acting as informants on translating documents—then perhaps his dad would be able to get Layla and her family released from the internment camp.
Layla is astonished that David would make such a suggestion. She's horrified at the notion that her family, or any Muslims, for that matter, should cooperate with the regime that hates them so much that they're prepared to lock them up in prison camps. David means well, but he doesn't seem to realize just what he's saying. No wonder Layla gets so upset and asks him flat out if he's lost his mind.