The invention contemplates a rack bushing and a rack and pinion steering assembly for use in a vehicle that includes such a rack bushing. The steering assembly may include a housing having a tubular rack portion with a tubular end, a rack mounted in the tubular rack portion and extending out of the tubular end, and a rack bushing mounted in the rack portion around the rack. The rack bushing includes a generally annular main body portion having a generally cylindrical inner surface centered about the axis and supporting the rack, an outer surface centered about the axis and including a generally cylindrical main surface adapted to engage the tubular end of the housing, and a first end and an opposed second end. The rack bushing may include a plurality of bores extending within the main body axially from the first end a portion of the way toward the second end. The rack bushing may also include a plurality of channels extending parallel to the axis, recessed in, and spaced circumferentially around the outer surface.