Financing of public transportation has been a challenge that needs to be concerned because ridership has decreased by up to 90% with the impact of COVID-19. This study presents sustainable policy recommendations and their cost-benefit analyses for the financing problems in public transportation caused by COVID-19. First of all, the public transportation data of Eskişehir-Turkey between the years 2018-2021 were investigated according to different public transportation modes, and financial losses were calculated for municipality. Secondly, within the scope of the study, six policies were recommended as follows: (i) different network and service plans for public transportation, (ii) new or improved low-budget public transportation, (iii) congestion pricing, (iv) bike, bike-sharing and e-scooter, (v) park and ride, (vi) pedestrianization. Crucial points in the implementation of policies and their possible financial impacts were investigated. According to the findings of the study, total ridership decreased 72.94 million in 2020 and 2021 compared to pre-COVID-19. In different modes, it was observed that the decrease buses ridership was higher than in trams. Municipality financial loss was calculated as $19.69-24.87 million. In the cost-benefit analysis results of recommended policies, net present value was calculated as 0.28-23.36 million $ according to different scenarios and sensitivity analyses. It has been foreseen that this is a very suitable period for the implementation of these policies, they could provide sustainable urban transportation and increase the quality of life as well as solving financial problems.